Demonstrate graphically and explain verbally the concept of minimum efficient level of production.

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The Answer is The minimum efficient level of production is the amount of output that spreads setup costs out sufficiently for a firm to undertake production profitably. In terms of our cost curve diagrams, it is the level of output where all economies of scale are exhausted. This is illustrated as output level Q* in the diagram below. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7145/11ead704_62e0_9e1b_9e2d_b7a97fd65b9c_TB7145_00.jpg" alt="The minimum efficient level of production is the amount of output that spreads setup costs out sufficiently for a firm to undertake production profitably. In terms of our cost curve diagrams, it is the level of output where all economies of scale are exhausted. This is illustrated as output level Q* in the diagram below.  " class="answers-bank-image d-block" rel="preload" >

Demonstrate Graphically and Explain Verbally the Concept of Minimum Efficient