-Refer to the Graph Above to Answer This Question

question 6

Multiple Choice

-Refer to the graph above to answer this question.All of the following statements except one are correct.Which is the exception?

• A)AC₁,AC₂ and AC₃ are long-run average cost curves.
• B)The long-run average cost curve illustrates both increasing and constant returns to scale.
• C)Constant returns to scale exist between outputs Q₄ and Q₅.
• D)An increase in output from Q₁ to Q₃ could occur in plant 1.
• E)Both the short-run and the long run-costs are illustrated in this graph.

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Definitions:

General Journal

A comprehensive record of all financial transactions of a company, listed in chronological order.

Correcting Entry

A correcting entry in accounting is a journal entry made to amend a previously recorded error in the financial statements.

Special Journal

A special journal is an accounting journal dedicated to recording transactions of a similar type, improving efficiency and organization.

General Journal

A comprehensive record where all financial transactions of a business are initially recorded.