Exhibit 14-1 Which of the Following Is Indicated

Multiple Choice

Exhibit 14-1 Which of the following is indicated in Exhibit 14-1?

A) Rubber is cheaper to produce than tires.
B) The total cost of producing 100, 000 tires is greater than the total cost of producing 200, 000 tires.
C) The minimum efficient scale of producing rubber is 4 million pounds.
D) The minimum efficient scale of producing tires is greater than 200, 000 tires.
E) The marginal cost of the 200, 000th tire must exceed the average cost of 200, 000 tires.