In the long run, when a firm is producing a level of output that corresponds to the minimum point of the average total cost curve, the firm is said to be operating:

Question

Quizplus · Accepted Answer

When a firm is producing at the minimum point of the average total cost curve, it is operating at the minimum efficient scale. This means it is producing at the lowest average cost possible, which is considered the most efficient scale of operation for minimizing costs.

In the Long Run, When a Firm Is Producing a Level