-Refer to the above figure. Economies of scale exist
A) over the entire range of output.
B) from output Q2 to Q5.
C) up to output Q2.
D) after output Q5.

Name: -Refer to the above figure. Economies of scale exist A) over the entire range of output. B) from output Q2 to Q5. C) up to output Q2. D) after output Q5.
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Question

-Refer to the above figure. Economies of scale exist
A) over the entire range of output. 
B) from output Q2 to Q5. 
C) up to output Q2. 
D) after output Q5.

Quizplus · Accepted Answer

Economies of scale exist up to output Q2, as indicated by the decreasing average total cost (ATC) up to that point. Beyond Q2, the ATC starts to increase, indicating diseconomies of scale.

-Refer to the Above Figure