If the Minimum Efficient Scale in Toaster Production Is 500

question 131

Multiple Choice

If the minimum efficient scale in toaster production is 500, 000 units per year,

• A)the average cost of producing 300, 000 toasters is greater than the average cost of producing 500, 000
• B)the average cost of producing 300, 000 toasters is equal to the average cost of producing 500, 000
• C)the total cost of producing 300, 000 toasters is greater than the total cost of producing 500, 000
• D)the firm should not produce more than 500, 000 toasters
• E)MC exceeds AC at 500, 000 toasters

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Definitions:

Silent

The state or quality of being quiet or without any sound.

Motionless

The state of not moving or being completely still.

Alogia

A decrease in speech or speech content; a symptom of schizophrenia. Also known as poverty of speech.

Fluency

The ability to express oneself easily and articulately, often referring to proficiency in a language or other modes of communication.