Figure 9.14
-Refer to Figure 9.14.Economies of scale are exhausted at which output level?

Name: Figure 9.14 -Refer to Figure 9.14.Economies of scale are exhausted at which output level?
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Question

Figure 9.14 
-Refer to Figure 9.14.Economies of scale are exhausted at which output level?

Quizplus · Accepted Answer

Economies of scale are exhausted at Q₃ units where the long-run average cost (LRAC) curve reaches its minimum point and starts to increase, indicating the onset of diseconomies of scale. The LRAC curve is U-shaped, with decreasing returns to scale before Q₃ units and increasing returns to scale after Q₃ units.

Figure 9.14 -Refer to Figure 9.14.Economies of Scale Are Exhausted at Which