“…Case 3. τ * 1 = τ 2 . Let λ = 120, η = 15, a = 1.05, b = 0.95, p = 0.45, q = 0.55, c f = 10, c d = 50, c r = 300, τ 2 = 20; Figure 4 is the plot of the long-run average cost function C 1 (τ 1 ) which is given by Equation (17). We can find that C 1 (τ 1 ) decreases in the interval [0, 20], which means that the optimal τ * 1 = 20, and the minimum of the long-run average cost rate is C 1 (20) = 1.8842.…”