Figure 11-10 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATCa, ATCb and ATCc.
-Refer to Figure 11-10. The minimum efficient scale of output is reached at what rate of output?

Question

Quizplus · Accepted Answer

The minimum efficient scale of output is reached at an output rate of 10,000 picture frames. This is the point at which the average total cost curve is at its minimum.

Figure 11-10 Illustrates the Long-Run Average Cost Curve for a Firm