Much of the research on the minimum efficient scale suggests that for many firms,economies of scale are:
A)relatively modest.
B)nonexistent.
C)substantial.
D)heavily dependent on the minimum efficient scale of the firm's production process.

Question

Quizplus · Accepted Answer

Much of the research on the minimum efficient scale suggests that while economies of scale do exist, they are not substantial for many firms. This means that the benefits of size are not generally significant enough to offset the higher costs that come with operating at larger scales, such as increased bureaucracy or more complex management structure. Therefore, the best choice is A) relatively modest.

Much of the Research on the Minimum Efficient Scale Suggests