A firm will want to increase its scale of plant if
A) it is persistently producing on the upward-sloping part of its short-run average total cost curve.
B) it is persistently producing on the downward-sloping part of its short-run average total cost curve.
C) it is producing below minimum efficient scale.
D) marginal cost is below average total cost.
E) marginal cost is below average variable cost.
Correct Answer:
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