The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-The minimum efficient scale is the level of output where the short-run average-total-cost curve reaches its minimum point.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-The minimum efficient scale is the level of output where the short-run average-total-cost curve reaches its minimum point.

Quizplus · Accepted Answer

The minimum efficient scale refers to the level of output where the long-run average total cost curve reaches its minimum point, not the short-run average total cost curve.

The Figure Given Below Shows Three Short Run Average Total