Author Question: If the minimum efficient scale in toaster production is 500,000 units per year, a. the average cost ... (Read 100 times)

natalie2426 · **on:** Jun 30, 2018

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

Question 2

Devaluation of a domestic currency
a. is also called revaluation
b. refers to an increase in a floating exchange rate
c. refers to a decrease in a floating exchange rate
d. refers to an increase in a fixed exchange rate
e. refers to a decrease in a fixed exchange rate