Different scales of production
Exhibit 6-9 Cost curves

-In Exhibit 6-9,economies of scale only exist for output levels up to:

Question

Different scales of production
Exhibit 6-9 Cost curves
 
-In Exhibit 6-9,economies of scale only exist for output levels up to:

Quizplus · Accepted Answer

Looking at the exhibit, we can see that the average total cost (ATC) curve dips down until an output level of approximately 2000, indicating economies of scale. After this point, the ATC curve starts to rise, suggesting diseconomies of scale. Therefore, the correct answer is B) 2000.

Different Scales of Production