-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:

Dominant Strategy

A strategy that yields the best outcome for a player, regardless of what the opponents choose.

Bottled Water

Packaged drinking water sold in plastic or glass bottles, and possibly treated or mineral-enriched for commercial sale.

Nash Equilibrium

A concept in game theory where no player can benefit by unilaterally changing their strategy if the strategies of the other players remain unchanged.

High Price

A level of cost that is above average or expected, often indicating scarcity or premium quality.