The smallest size plant size at which the long-run average cost curve is at its minimum is called the
A) envelope.
B) profit-maximizing scale of production.
C) minimum efficient scale.
D) shut down point.

Question

Quizplus · Accepted Answer

The minimum efficient scale (MES) is the smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to supplies and costs.

The Smallest Size Plant Size at Which the Long-Run Average