Different scales of production
Exhibit 6-9 Cost curves

-In Exhibit 6-9,constant returns to scale only exist for output levels between:

Question

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

Quizplus · Accepted Answer

In the exhibit, the long-run average cost curve shifts downward as the scale of production increases up to an output of 2000 units. Beyond 2000 units, the long-run average cost curve begins to slope upward, indicating diseconomies of scale. Therefore, the constant returns to scale only exist for output levels between 2000 and 3000 units.

Different Scales of Production