Table 8-8
$\begin{array}{|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { (sets) }
\end{array} & \begin{array}{c}
\text { Long-Run } \
\text { Average Cost }
\end{array} \
\hline 100 & \$ 40 \
\hline 200 & 35 \
\hline 300 & 30 \
\hline 400 & 30 \
\hline 500 & 35 \
\hline
\end{array}$ Elegant Settings manufactures stainless steel cutlery. Table 8-8 shows the company's cost data.
-Refer to Table 8-8.What is the minimum efficient scale of production?

Question

Table 8-8
 $\begin{array}{|c|c|}
\hline \begin{array}{c}
\text { Quantity } \
\text { (sets) }
\end{array} & \begin{array}{c}
\text { Long-Run } \
\text { Average Cost }
\end{array} \
\hline 100 & \$ 40 \
\hline 200 & 35 \
\hline 300 & 30 \
\hline 400 & 30 \
\hline 500 & 35 \
\hline
\end{array}$ Elegant Settings manufactures stainless steel cutlery. Table 8-8 shows the company's cost data.
-Refer to Table 8-8.What is the minimum efficient scale of production?

Quizplus · Accepted Answer

The minimum efficient scale of production is the lowest quantity at which the long-run average cost is at its minimum, which is 30 in this case. Beyond this level of production, the cost per set remains constant, therefore the most efficient production level is 300 units.

Table 8-8 Elegant Settings Manufactures Stainless Steel Cutlery