Exhibit 7-15 Long and Short-Run cost of Producing Color Printers The firm represented in Exhibit 7-15 experiences diseconomies of scale from A)Q₁to Q₃only B)Q₂to Q₃only C)Q₂to Q₄only D)Q₃to Q₅only E)the question cannot be answered with the information given

Question

Quizplus · Accepted Answer

The firm experiences diseconomies of scale between the output levels of Q₃and Q₅only as the long-run average cost curve begins to increase beyond the short-run average cost curve at this point. Therefore, the firm is facing increasing costs per unit of output, indicating diseconomies of scale.

Exhibit 7-15 Long and Short-Run Cost of Producing Color Printers