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

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.

Quizplus · Accepted Answer

Diseconomies of scale do not exist between 0 and Q₁ units of output; instead, economies of scale exist up to Q₀, and constant returns to scale exist between Q₀ and Q₁.

Use the Figure Below to Answer the Following Questions