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 + $4,000* quantity produced. Given these data, which of the following is a false statement?

a. There are economies of scale.

b. There are fixed costs associated with this business.

c. There are diseconomies of scale.

d. A firm that produces a larger output has a cost advantage over a smaller firm.