Question $2$

$50$ Points

Please select all that are true regarding Minimum Efficient Scale $($MES$),$ note that this is$,$ the same point as "minimum cost output":

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

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

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

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

E Long run average costs include fixed cost steps as quantities $($scale$)$ increase

Average costs do not include fixed cost since they don't change

Short run average cost curves are for'a given level of fixed cost, individually

If the quantity demanded is twice as great as Qmes, then the lowest cost solution is for one firm to supply the market

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