A manufacturing firm with a single plant is contemplating changing its plant size. It must choose from among seven alternative plant sizes. In the table, plant size A is the smallest it might build, and size G is the largest. Currently, the firm's plant size is B.
Plant Size Average Total Cost ($)
A (smallest) ..................................... 4,250
B ................................................. 3,600
C ................................................. 3,100
D ................................................. 3,100
E ................................................. 3,100
F ................................................. 3,250
G (largest) ..................................... 4,100
a. At plant site B, is this firm currently experiencing economies of scale or diseconomies of scale?
b. What is the firm's minimum efficient scale?