If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain.

A. very small because the average total cost of production rises with output.

B. very large because the marginal cost of production falls with output.

C. very small because the total cost of production rises with output.

D. very large because the average total cost of production falls with output.

E. very small because the average variable cost of production rises with output.

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4 September, 13:20

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Vinny · Answer 1

D. very large because the average total cost of production falls with output.