When average total cost rises if a producer either increases or decreases production, then the firm is said to be operating at efficient scale.

Name: When average total cost rises if a producer either increases or decreases production, then the firm is said to be operating at efficient scale.
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When average total cost rises with either an increase or decrease in production, it means the firm is producing at the quantity where average total cost is minimized, which is known as the efficient scale.

When Average Total Cost Rises If a Producer Either Increases