Answer:
A. Average total cost is minimized
Explanation:
Economies of scale refers to the cost advantages a firm enjoys when production becomes efficient. Economies of scale can be achieved by increasing production and and lowering cost of production.This is because cost are spread over a larger number of goods, thereby, making per unit cost cheaper.
There are two types of cost
1. Fixed cost: They are cost that doesn't change during the production process. Such as buildings, furnitures and fittings, machineries.
2. Variable cost: They are cost that changes with production process such as cost of raw materials.
When a firm is experiencing economies of scale, long-run, average total cost is minimized.
