You Are a Consultant and Have Been Employed by a Large

You are a consultant and have been employed by a large inner-city hospital called City Hospital to estimate the demand for its services.Your research indicates that the income elasticity of demand for the target market is +0.50;the price elasticity of demand is -0.15;and the cross-price elasticity of demand with respect to the price of services at Rural Hospital,a near-by hospital,is +0.35.Answer the following questions.
If a hospital is experiencing economies of scale,

A) Its average cost curve is positively sloped as output increases
B) Its average cost curve is negatively sloped as output increases
C) It should reduce its output level to lower costs
D) Quality is falling as output is rising
E) Both b and c are true