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If the Minimum Efficient Scale in Toaster Production Is 500,000

Question 56

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 200,000 toasters is less than the average cost of producing 500,000
C) the average cost of producing 300,000 toasters is less than the average cost of producing 500,000
D) the average cost of producing 300,000 toasters is the same as the average cost of producing 500,000
E) the average cost of producing 500,000 toasters is zero

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