All of the following statements are true of the minimum efficient scale except one. Which one?

A) Any increase in the scale of operation will encounter either constant returns to scale or diseconomies of scale.
B) All possible economies of scale have been exhausted.
C) The short-run average total cost curve’s minimum point is equal to the long-run average cost curve’s minimum point.
D) An increase in the output level will increase profit.

ANSWER:

D) An increase in the output level will increase profit.