What is the term for the lowest level of output at which a firm's goods are produced at minimum long-run average total cost?
A) the point of diminishing returns
B) the minimum total product
C) the minimum efficient scale
D) the point of zero marginal cost

Question

Quizplus · Accepted Answer

The term for the lowest level of output at which a firm's goods are produced at minimum long-run average total cost is called the minimum efficient scale (MES). At this point, the firm is operating at maximum efficiency and any further increase in output will result in higher long-run average total costs.

What Is the Term for the Lowest Level of Output