Which of the Following Is True in the Typical Firm

Multiple Choice

Which of the following is true in the typical firm if economies of scale are relatively important in an industry?

A) Marginal cost curve will decline continuously until it reaches minimum efficient scale.
B) Long-run average cost curve will begin rising before it reaches minimum efficient scale.
C) Long-run average cost curve will reach a minimum at a level of output that leaves room for a large number of firms to enter the industry.
D) Long-run average cost curve will reach a minimum at a level of output that is a relatively large fraction of total industry sales.