-Refer to Figure 7.7 to answer this question.All of the following statements,except one,are correct.Which is the exception? A)Plant 1 has excess capacity at output level Q₁. B)Output level Q₂ is economic capacity for plant 1. C)Output level Q₃ can be produced cheaper in plant 2 than in plant 1. D)Plant 2 achieves minimum efficient scale. E)Economies of scale are experienced when output is increased from Q₁ to Q₄.

Question

Quizplus · Accepted Answer

Output level Q3 can be produced cheaper in plant 1 than in plant 2.