question 2Draw the following curves (on a single graph):Short-run average cost curve; Short-run marginal cost curve. **Please post the graph as a separate file. Please label it as HW1Graph. Thanks.Use the information from the graph to answer to the following questions:At what level of output does average cost reach its minimum?At what level of output is Average Cost equal to Marginal Cost?c) Over what range of output does diminishing returns occur?(must include the entire range)Question 3.Consider the following statements when answering this questionI. The marginal cost curve intersects the average total cost and average variable cost curves at their minimum values.II. When a firm has positive fixed costs, the output level associated with minimum average variable costs is less than the output associated with minimum average total costs.Choose the best alternativea.I is true, and II is false.b.I is false, and II is true.c.I and II are both true.d.I and II are both false.Question 4A firm experiences increasing returns to scale; that is, doubling all its inputs more thandoubles its output. What can be inferred about the firm’s short-run costs?
Marginal cost curve
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