-Refer to Figure 7

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.