The smallest size at which long-run average cost is at its lowest level is called
A) the minimum efficient scale.
B) the maximum efficient scale.
C) economies of scale.
D) diseconomies of scale.

Question

Quizplus · Accepted Answer

The minimum efficient scale (MES) refers to the smallest level of production a firm can achieve while still taking full advantage of economies of scale in terms of costs per unit of output.

The Smallest Size at Which Long-Run Average Cost Is at Its