-Refer to the above figure.Economies of scale exist
A)over the entire range of output.
B)from output $\mathrm { Q } _ { 2 }$ to $\mathrm { Q } _ { 5 }$ .
C)up to output $\mathrm { Q } _ { 2 }$ .
D)after output $\mathrm { Q } _ { 5 }$ .

Question

-Refer to the above figure.Economies of scale exist
A)over the entire range of output. 
B)from output $\mathrm { Q } _ { 2 }$ to $\mathrm { Q } _ { 5 }$ . 
C)up to output $\mathrm { Q } _ { 2 }$ . 
D)after output $\mathrm { Q } _ { 5 }$ .

Quizplus · Accepted Answer

Economies of scale exist up to output $ \mathrm{Q}_2 $ because this is the range where the average cost per unit decreases as output increases.

-Refer to the Above Figure Q2\mathrm { Q } _ { 2 }Q2​

-Refer to the Above Figure $\mathrm { Q } _ { 2 }$