-Refer to the graph above to answer this question.All of the following statements,except one,are correct.Which is the exception? A)Firms that produce an output less than Q₁ are too small. B)Firms that produce an output which greater than Q₂ are too large. C)Firms that produce output Q₂ are achieving MES. D)Firms that produce an output which is between Q₁ and Q₂ are neither too large nor too small. E)Firms that produce an output which is less than Q₁ cannot be achieving economic capacity.

Question

Quizplus · Accepted Answer

The statement that firms producing output Q₂ are achieving MES (Minimum Efficient Scale) is incorrect if the graph does not indicate Q₂ as the point of MES. MES is typically the lowest point on the long-run average cost curve, and if Q₂ is not at this point, the statement is incorrect.

-Refer to the Graph Above to Answer This Question