(Solution) - The following diagram shows the long run average and marginal cost -(2025 Original AI-Free Solution)

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The following diagram shows the long-run average and marginal cost curves for a firm. It also shows the short-run marginal cost curve for two levels of fixed capital: K = 150 and K = 300. For each plant size, draw the corresponding short-run average cost curve and explain briefly why that curve should be where you drew it and how it is consistent with the other curves.