Cathy's Car Wash, which operates in a perfectly competitive market can - in the long run - choose between three possible production methods that have costs as follows:

	Production Method 1	Production Method 2	Production Method 3
FC	100	250	400
MC per car washed	10	5	3

Cathy's output increases from 50 cars to 100 cars. In the long-run we would expect the production method used by Cathy's business to:

Stay using production method 2.

Switch from production method 1 to production method 3.

Switch from production method 1 to production method 2.

Switch from production method 2 to production method 3.