Use the figure below to answer the following questions. Figure 11.4.4 -Refer to Figure 11.4.4,which illustrates the long-run average total cost curve.Which one of the following statements is false? A)Economies of scale exist between 0 and Q₀ units of output. B)Diseconomies of scale exist between 0 and Q₁ units of output. C)Constant returns to scale exist between Q₁ and Q₂ units of output. D)Diseconomies of scale exist at quantities greater than Q₂ units of output. E)Constant returns to scale exist between Q₀ and Q₁ units of output.

Question

Quizplus · Accepted Answer

The false statement is that diseconomies of scale exist between 0 and Q₁ units of output. In reality, economies of scale exist in this range, as the long-run average total cost curve slopes downward.

Use the Figure Below to Answer the Following Questions