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The Following Figure Shows the Long-Run Average Cost Curve for a Tire

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The following figure shows the long-run average cost curve for a tire manufacturer and the long run average cost curve for a rubber producer. Which of the following can be concluded from the information provided in the figure given below?​ ​
Figure 14.1
The following figure shows the long-run average cost curve for a tire manufacturer and the long run average cost curve for a rubber producer. Which of the following can be concluded from the information provided in the figure given below?​ ​ Figure 14.1   ​   A) The cost of producing rubber is much lower than the cost of producing tires. B) The total cost of producing 100,000 tires is greater than the total cost of producing 200,000 tires. C) The minimum efficient scale of producing rubber is 4 million pounds. D) The minimum efficient scale of producing tires is greater than 200,000 tires. E) The marginal cost of producing the 200,000th tire must exceed the average cost of 200,000 tires.
The following figure shows the long-run average cost curve for a tire manufacturer and the long run average cost curve for a rubber producer. Which of the following can be concluded from the information provided in the figure given below?​ ​ Figure 14.1   ​   A) The cost of producing rubber is much lower than the cost of producing tires. B) The total cost of producing 100,000 tires is greater than the total cost of producing 200,000 tires. C) The minimum efficient scale of producing rubber is 4 million pounds. D) The minimum efficient scale of producing tires is greater than 200,000 tires. E) The marginal cost of producing the 200,000th tire must exceed the average cost of 200,000 tires.

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Definitions:

Air Freight

The transportation of goods by aircraft, a fast but usually more expensive mode of shipping compared to road or maritime transport.

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Harbors or docks located along the coastlines that serve as points for the arrival and departure of ships and goods.

Silica Sand

High-purity sand that is made predominantly of quartz silt and is used in various industries such as glass making and hydraulic fracturing.

Glass Manufacturing

The process of producing glass products, which involves melting silica sand and other raw materials to form glass, which is then shaped into desired forms.

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