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 the point where the long-run average total cost (LRATC) curve stops decreasing and becomes flat. This occurs at Q₃ units in the given graph. Beyond this point, any further increase in output will result in diseconomies of scale, leading to an increase in LRATC.

Figure 9-14 -Refer to Figure 9-14.Economies of Scale Are Exhausted at Which