If a company is producing at a level of output at which the long-run average-total-cost curve reaches a minimum,the company:

Question

Quizplus · Accepted Answer

At minimum efficient scale, a company is producing at the level where long-run average-total-cost curve reaches a minimum, while still have the potential to produce at a lower cost if technology or efficiency improves. This implies that the company is operating at an optimal level of production and achieving economies of scale, but not yet experiencing diseconomies of scale.

If a Company Is Producing at a Level of Output