In 1955,the chairman of the Sony corporation offered to sell transistor radios through department stores in the United States.Sony based its selling price on its average total cost of production.If a store bought 5,000 radios,Sony would sell them at $29.95 each.For 10,000 there would be a discount,and for more than 10,000 the price would begin to climb.Based on this information,Sony reached minimum efficient scale

Question

Quizplus · Accepted Answer

Sony reached minimum efficient scale at a quantity of 10,000 radios because this is the point at which the price begins to climb, indicating that the company is no longer able to produce radios at the same low cost as it could at lower quantities.

In 1955,the Chairman of the Sony Corporation Offered to Sell