Different Scales of Production

question 95

Multiple Choice

Different scales of production
Exhibit 6-9 Cost curves

-In Exhibit 6-9,the U-shaped LRAC curve indicates which of the following as quantity increases from 0 to 4000?

• A)Diseconomies of scale; constant returns to scale; economies of scale.
• B)Constant returns to scale; economies of scale; diseconomies of scale.
• C)Economies of scale; constant returns to scale; diseconomies of scale.
• D)Diseconomies of scale; economies of scale; constant returns to scale.
• E)Economies of scale; diseconomies of scale; constant returns to scale.

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