Exhibit 22-5

-Refer to Exhibit 22-5.The minimum efficient scale is at

Question

Exhibit 22-5
 
-Refer to Exhibit 22-5.The minimum efficient scale is at

Quizplus · Accepted Answer

Point B represents the minimum efficient scale, where the lowest cost per unit is achieved. This is because at this point, the economies of scale are fully utilized, leading to cost savings in production. Points A and C represent levels of production that are either too small or too large, respectively, leading to higher costs per unit. Therefore, point B is the best choice.

Exhibit 22-5 -Refer to Exhibit 22-5.The Minimum Efficient Scale Is at