-Refer to Figure 7.7 to answer this question.All of the following statements except one are correct.Which is the exception? A)AC₁,AC₂,and AC₃ are short-run average cost curves. B)The long-run average cost curve illustrates both economies of and constant returns to scale. C)Constant returns to scale exist between outputs Q₄ and Q₅. D)Plant 3 achieves minimum efficient scale. E)Both the short run and the long run are illustrated in this graph.

Question

Quizplus · Accepted Answer

Plant 3 achieving minimum efficient scale is not correct because the minimum efficient scale is a concept related to the long-run average cost curve, not specific to any single plant's cost curve.