QUESTION 5

A firm has typical U-shaped average and marginal cost curves. At the current level of output, long-run average cost is $75and long-run marginal cost is $85. This implies that at the current output level:

A) There are economies of scale.

B) There are diseconomies of scale.

C) There are economies of scope.

D) The firm is producing at the minimum efficient scale.

E) There is a learning curve.