Diseconomies of scale are most likely at very low levels of output

There are very few, if any, good substitutes for motor oil. What does this imply?

a) The supply of motor oil would tend to be price elastic. b) The demand for motor oil would tend to be price elastic. c) The demand for motor oil would tend to be price inelastic. d) The demand for motor oil would tend to be income elastic.

In long-run equilibrium, a perfectly competitive firm produces the output level that minimizes average total cost

a. True b. False Indicate whether the statement is true or false