Different scales of production
Exhibit 6-9 Cost curves

-In Exhibit 6-9,the U-shaped LRAC curve indicates which of the following as quantity increases from 0 to 4000?

Question

Different scales of production
Exhibit 6-9 Cost curves
 
-In Exhibit 6-9,the U-shaped LRAC curve indicates which of the following as quantity increases from 0 to 4000?

Quizplus · Accepted Answer

The U-shaped LRAC curve typically indicates that as quantity increases, a firm initially experiences economies of scale, then constant returns to scale, and finally diseconomies of scale.

Different Scales of Production