A security system company's total production costs depend on the number of systems produced according to the following equation: Total Costs = $20,000,000 + $4000 quantity produced. Given these data, which of the following is a false statement?

There are economies of scale.

There are fixed costs of $20,000,000 associated with this business.

There are diseconomies of scale.

In case of economies of scale a firm that produces a larger output has a cost advantage over a smaller firm.

Average cost is constant for constant returns to scale.