If the Minimum Efficient Scale in Microwave Oven Production Is

Multiple Choice

If the minimum efficient scale in microwave oven production is 100,000 units per year,it implies that _____

A) the average cost of producing 50,000 microwave ovens is greater than the average cost of producing 100,000 microwave ovens.
B) the average cost of producing 50,000 microwave ovens is equal to the average cost of producing 100,000 microwave ovens.
C) the total cost of producing 50,000 microwave ovens is greater than the total cost of producing 100,000 microwave ovens.
D) the firm should not produce more than 50,000 microwave ovens.
E) marginal cost exceeds average cost at 100,000 microwave ovens.