3. (a) Will the envelope curve be tangential to the bottom of each of the short-run average cost curves? Explain why it should or should not be. (b) What does the isoquant map look like if there are...

(a) Will the envelope curve be tangential to the bottom of each of the short-run average cost curves? Explain why it should or should not be.

(b) What does the isoquant map look like if there are

i)continuously increasing returns to scale;

ii)continuously decreasing returns to scale? Please illustrate

Extracted text: 3. (a) Will the envelope curve be tangential to the bottom of each of the short-run average cost curves? Explain why it should or should not be. (b) What does the isoquant map look like if there are (i) continuously increasing returns to scale; continuously decreasing returns to scale? Please illustrate. (ii)