Exhibit 6 -14 Cost Curves

Exhibit 6 -14 Cost curves

In Exhibit 6-14, the U-shaped LRAC curve indicates which of the following as quantity increases from 0 to 4,000?

A) Diseconomies of scale; constant returns to scale; economies of scale.
B) Constant returns to scale; economies of scale; diseconomies of scale.
C) Economies of scale; constant returns to scale; diseconomies of scale.
D) Economies of scale; diseconomies of scale; constant returns to scale.