A company produces 1,000 soccer balls each day, which it sells to customers for $25 each. All costs associated with production and sales total $12,500; however, if the company were to produce one additional soccer ball per day, total costs would increase to $12,700. It follows that:
- the company benefits from economies of scale.
- marginal cost equals $100.
- the company has negative economic profit.
- marginal cost equals $200.