Economies of scale occurs when long run average costs decreases as firm produces more output. Select one: True False If you are given the following total cost function and the demand equation as follows: TC = 40+ 50Q +5Q^2 P= 170 -5 Q where P is price level, Q is quantity sold and TC is total cost. The profit maximizing output level in the above model is: a. 20 b. 10 c. 6 d. 110.