The following figure shows the long-run average cost curve of a firm.
Figure 6-1

-Refer to Figure 6-1.What is the quantity that the firm will produce if it is operating at minimum efficient scale?
A)0E
B)0A
C)0C
D)0D
E)0B

Question

The following figure shows the long-run average cost curve of a firm.
Figure 6-1
 
-Refer to Figure 6-1.What is the quantity that the firm will produce if it is operating at minimum efficient scale?
A)0E 
B)0A 
C)0C 
D)0D 
E)0B

Quizplus · Accepted Answer

Minimum efficient scale occurs where the LRAC curve is at its lowest point, which is at point C on the graph. At this point, the firm is producing the quantity represented by QC, which is the minimum quantity at which the firm can produce at the lowest LRAC.

The Following Figure Shows the Long-Run Average Cost Curve of a Firm