The graph above contains the logrun average cost LAC curve f

The graph above contains the log-run average cost (LAC) curve for a meat-packing plant. This plant enjoys economies of scale for output levels where This plant suffers from diseconomies of scale for output levels where This plant has neither economies nor diseconomies of scale for output levels where

Solution

a. This plant enjoys economies of scale where output is less than 800.

This plant suffers from diseconomies of scale for output levels where the output is greater than 800.

This plant has neither economies nor diseconomies of scale where output is equal to 800.