​If the Minimum Efficient Scale in Microwave Oven Production Is

question 149

Multiple Choice

​If the minimum efficient scale in microwave oven production is 100,000 units per year, it implies that:

• A)the average cost of producing 50,000 microwave ovens is greater than the average cost of producing 100,000.
• B)the average cost of producing 50,000 microwave ovens is equal to the average cost of producing 100,000.
• C)the total cost of producing 50,000 microwave ovens is greater than the total cost of producing 100,000.
• D)the firm should not produce more than 50,000 microwave ovens.
• E)marginal cost exceeds average cost at 100,000 microwave ovens.

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