Use the figure below to answer the following question. Figure 11.4.3 -Refer to Figure 11.4.3 which shows a firm's long-run average total cost curve.An increase in production from Q₁ to Q₂ sweaters per day produces A)the minimum efficient scale. B)economies of scale. C)diseconomies of scale. D)constant total costs. E)constant returns to scale.

Question

Quizplus · Accepted Answer

An increase in production from Q1 to Q2 on the long-run average total cost curve indicates economies of scale, where the average cost per unit decreases as production increases.

Use the Figure Below to Answer the Following Question