If the Minimum Efficient Scale in Woodstove Production Is 100

question 118

Multiple Choice

If the minimum efficient scale in woodstove production is 100, 000 units per year,

• A)the average cost of producing 50, 000 stoves is greater than the average cost of producing 100, 000
• B)the average cost of producing 50, 000 stoves is equal to the average cost of producing 100, 000
• C)the total cost of producing 50, 000 stoves is greater than the total cost of producing 100, 000
• D)the firm should not produce more than 100, 000 woodstoves
• E)MC exceeds AC at 100, 000 stoves

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