Figure 13-13
-Refer to Figure 13-13.Economies of scale are exhausted at which output level?
A)Q1 units
B)Q2 units
C)Q3 units
D)more than Q1 units

Question

Figure 13-13 
-Refer to Figure 13-13.Economies of scale are exhausted at which output level?
A)Q1 units 
B)Q2 units 
C)Q3 units 
D)more than Q1 units

Quizplus · Accepted Answer

Economies of scale are exhausted at Q3 units where the minimum efficient scale (MES) is reached and the average cost curve starts increasing again. Beyond Q3 units, diseconomies of scale emerge as the production becomes inefficient and costs increase.

Figure 13-13 -Refer to Figure 13-13.Economies of Scale Are Exhausted at Which