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

question 58

Multiple Choice

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 is indicated by 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 tires is 200,000 tires.
• 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.

---

Definitions:

Consumer Reports

An American magazine and organization providing unbiased product reviews, ratings, and comparisons to help consumers make informed purchasing decisions.

Interpersonal Affection

The feelings of warmth, fondness, and emotional closeness shared between individuals in personal relationships.

Love

A complex set of emotions and behaviors characterized by affection, warmth, and regard towards another person or entity.

Social Acceptance

A situation in which other people have come to like you, respect you, approve of you, and include you in their groups and relationships.