The diagram illustrates the long-run average cost curve for a firm that encounters constant factor prices. Which economic concepts in the table account for the LRAC curve’s shape?
- Aeconomies and diseconomies of scale: yes; the law of diminishing returns: yes; the law of variable proportions: no
- Beconomies and diseconomies of scale: yes; the law of diminishing returns: no; the law of variable proportions: no
- Ceconomies and diseconomies of scale: no; the law of diminishing returns: yes; the law of variable proportions: yes
- Deconomies and diseconomies of scale: no; the law of diminishing returns: no; the law of variable proportions: yes