If the Minimum Efficient Scale in Toaster Production Is 500

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