If the minimum efficient scale in woodstove production is 100,000 units per year,
a. the average cost of producing 50,000 stoves is greater than the average cost of producing 100,000
b. the average cost of producing 50,000 stoves is equal to the average cost of producing 100,000
c. the total cost of producing 50,000 stoves is greater than the total cost of producing 100,000
d. the firm should not produce more than 100,000 woodstoves
e. MC exceeds AC at 100,000 stoves
Question 2
Under the gold standard, each country had little control over its own monetary policies.
a. True
b. False
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