If the minimum efficient scale in woodstove production is 200,000 units per year, _____.
A) the long-run average cost of producing 50,000 stoves is greater than the average cost of producing 100,000
B) the long-run average cost of producing 50,000 stoves is equal to the average cost of producing 100,000
C) the long-run total cost of producing 50,000 stoves is greater than the total cost of producing 100,000
D) the firm should not produce more than 200,000 woodstoves each year
E) the short-run marginal cost exceeds the short-run average cost at 200,000 stoves
Correct Answer:
Verified
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