Figure 8-7 -Which of the Following Is True for Figure 8-7

Multiple Choice

Figure 8-7
-Which of the following is true for Figure 8-7?

A) Firms in this industry begin to experience diminishing returns to their variable factors at output q₁.
B) Between q₁ and q₂, firms in this industry experience economies of scale.
C) Firms producing output rates less than q₁ or more than q₂ will find it difficult to survive.
D) The largest firms in this industry have the lowest per-unit cost.