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Is the efficient scale of the firm more than, less than, or exactly 100 units? Note: Recall that efficient scale occurs when MC = ATC

Is the efficient scale of the firm more than, less than, or exactly 100 units?

Note: Recall that efficient scale occurs when MC = ATC

Note: Recall that if MC > ATC, then ATC is increasing. If MC < ATC, then ATC is decreasing.

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We have MC = $10 > ATC = $8. Hence, ATC is increasing, implying that the efficient scale occurs at an output level less than 100 units.

We have MC = $10 > ATC = $8. Hence, ATC is increasing, implying that the efficient scale occurs at an output level more than 100 units.

We have MC = $10 > ATC = $8. Hence, ATC is decreasing, implying that the efficient scale occurs at an output level less than 100 units.

We have MC = $10 > ATC = $8. Hence, ATC is decreasing, implying that the efficient scale occurs at an output level more than 100 units.

between for all of those answer which one is correct

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