Question $16$

$4$ Points

MS: Please select all that are true regarding Minimum Efficient Scale $($MES$)$:

Quantities $($x$-$axis$)$ less than MES exhibit increasing returns to scale due to economies of scale

Average costs do not include variable cost

MES is the quantity produced where average total costs for a firm are at a minimum

If the quantity demanded is greater than MES, then a single firm $($monopoly$)$ will see decreasing average total costs over all Q

Short run average cost curves include variable cost

MES is the quantity where total costs for a firm are at a minimum

Quantities $($x$-$axis$)$ greater than MES exhibit increasing returns to scale due to diminishing marginal returns

H Long run average costs include variable cost as quantities $($scale$)$ increase