The efficient scale of production is
A)the minimum level of production where average cost is minimized
B)the output level where marginal revenue equals marginal cost
C)where total revenue is maximized
D)where marginal cost equals average variable cost

Question

Quizplus · Accepted Answer

The efficient scale of production refers to the minimum level of production where average cost is minimized. At this point, the firm is operating at optimal efficiency, and any additional production will result in an increase in average cost. Therefore, it is the best choice for maximizing profits and minimizing costs.

The Efficient Scale of Production Is