Suppose a Company Increases Production from a Point Where Marginal

Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why?

A) No, average total costs have increased which means the company is not minimizing losses.
B) Yes, because average variable costs are always less than average total costs.
C) No, the previous level of output was the most efficient because it had the lowest average total cost.
D) Yes, even though the previous level of output had minimized the average total cost, there was still profit to be earned by producing additional units.

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