All of the following statements are true of the minimum efficient scale except one. Which one?
A) All possible economies of scale have been exhausted.
B) The short-run average total cost curve's minimum point is equal to the long-run average cost curve's minimum point.
C) Any increase in the scale of operation will encounter diseconomies of scale.
D) An increase in the output level will increase profit.

Question

Quizplus · Accepted Answer

An increase in the output level will not necessarily increase profit at the minimum efficient scale, as all economies of scale have already been exhausted, and further increases could lead to diseconomies of scale.

All of the Following Statements Are True of the Minimum