-Refer to Figure 7

question 70

Multiple Choice

-Refer to Figure 7.7 to answer this question.All of the following statements,except one,are correct.Which is the exception?

• A)Plant 1 has excess capacity at output level Q₁.
• B)Output level Q₂ is economic capacity for plant 1.
• C)Output level Q₃ can be produced cheaper in plant 2 than in plant 1.
• D)Plant 2 achieves minimum efficient scale.
• E)Economies of scale are experienced when output is increased from Q₁ to Q₄.

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