Afirm is experiencing economies of scale when its ':I declines as more output is produced. The table below shows the long-run total costs of three different firms. Firm 1 Firm 2 Firm 3 Long-Run Total Cost | Long-Run Total Cost | Long-Run Total Cost 4 1 s2 | @ s | = s3 | Do firms 1 and 2 experience economies of scale? Or do they experience diseconomies of scale? Both firms are experiencing economies of scale. Firm 1 is experiencing economies of scale, while firm 2 is experiencing diseconomies of scale. Both firms are experiencing diseconomies of scale. o0 w > Firm 1 is experiencing diseconomies of scale, while firm 2 is experiencing economies of scale. Minimum efficient scale is the lowest level of output where long-run average total cost is minimized. Firm 3's minimum efficient scale occurs when the output is unit(s). 2. oo w > Afirm is experiencing economies of scale when its l:' declines as more output is produced. The table below shows the long-run total costs of th Firm 1 Firm 3 Long-Run Total Cos average total cost Long-Run Total Cost $10 $6 $16 total cost $11 $20 $14 $22 marginal cost $23 Do firms 1 and 2 experience economies of scale? Or uu uiey expenenve usecuriomies of scale? Both firms are experiencing economies of scale. Firm 1 is experiencing economies of scale, while firm 2 is experiencing diseconomies of scale. Both firms are experiencing diseconomies of scale. o m Firm 1 is experiencing diseconomies of scale, while firm 2 is experiencing economies of scale. Minimum efficient scale is the lowest level of output where long-run average total cost is minimized. Firm 3's minimum efficient scale occurs when the output is unit(s). 2. O 0 w