The figure below shows a family of cost curves for a firm.The subscripts 1,2,and 3 for the SRATC curves refer to different plant sizes.
FIGURE 8-3
-Refer to Figure 8-3.The minimum efficient scale is achieved by this firm at output level
A)Q1.
B)Q2.
C)Q3.
D)Q4.
E)Q5.

Question

The figure below shows a family of cost curves for a firm.The subscripts 1,2,and 3 for the SRATC curves refer to different plant sizes.
  FIGURE 8-3
-Refer to Figure 8-3.The minimum efficient scale is achieved by this firm at output level
A)Q1. 
B)Q2. 
C)Q3. 
D)Q4. 
E)Q5.

Quizplus · Accepted Answer

The minimum efficient scale (MES) is the smallest amount of production a firm can achieve while still taking full advantage of economies of scale in terms of cost per unit of production. In the context of a question without a visual figure, the correct answer cannot be determined specifically. However, assuming a typical cost curve, the MES is usually found at the bottom of the long-run average cost curve, where the firm is most efficient in its production.

The Figure Below Shows a Family of Cost Curves for a Firm.The