-Refer to the graph above to answer this question.All of the following statements except one is correct.Which is the exception? A)The LRAC curve illustrates both the advantages of the division of labour and the law of diminishing returns. B)Economies,diseconomies and constant returns to scale are illustrated in the LRAC curve. C)Given the LRAC curve illustrated,a firm could be too small or too large. D)Diseconomies of scale exist at output levels above Q₂.

Question

Quizplus · Accepted Answer

The LRAC (Long Run Average Cost) curve primarily illustrates economies and diseconomies of scale, as well as constant returns to scale, rather than the division of labour or the law of diminishing returns directly. These concepts are more closely related to the shape and behavior of the curve rather than being explicitly shown by it.

-Refer to the Graph Above to Answer This Question