To make in-house production worthwhile, a company must make at least the _____.
A) minimum efficient scale
B) minimum wage scale
C) minimum pay scale
D) minimum time scale

Question

Quizplus · Accepted Answer

The minimum efficient scale (MES) refers to the lowest point at which a company can produce its goods or services at a competitive cost. Below this scale, the company would not be able to achieve the economies of scale necessary to compete effectively in the market.

To Make In-House Production Worthwhile, a Company Must Make at Least