Problem: Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economies of scale and a wide range of output over which long-run average cost is constant; finally, at very high output, there are diseconomies of scale.
Draw a representative long-run average cost curve, and indicate the minimum efficient scale.
Would you expect that firms in an industry like this would all produce about the same level of output? Why?