When a firm manufactures 2,000-3,000 units of a product, it incurs an average cost of $10 per unit. When it manufactures 3,000-4,000 units of the same product, the average cost per unit reduces to $7. However, manufacturing beyond 4,000 units will raise the average cost per unit to $9. Which of the following is the firm's minimum efficient scale?
A. above 4,000 units
B. below 2,000 units
C. 3,000-4,000 units
D. 2,000-3,000 units
Answer: C
Business
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