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In the above figure, the firm experiences constant returns to scale between output levels of

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In the above figure, the firm experiences constant returns to scale between output levels of

Question 1.

In the above figure, for any output level larger than Q3, this firm experiences

• economies of scale.

• constant economies of scale.

• diseconomies of scale.

• decreasing long run average costs.

Question 2.

In the above figure, the firm experiences constant returns to scale between output levels of

• zero and Q1.

• Q2 and Q3.

• Q3 and Q4.

• any level greater than Q4.

Textbook

Economics Today: The Micro View

Edition: 19^th

Author: Miller

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