The level of output at which all economies of scale have been exhausted is known as
A)constant returns to scale.
B)minimum efficient scale.
C)the economically efficient output level.
D)optimal economic size.

Question

Quizplus · Accepted Answer

Minimum efficient scale refers to the level of output at which all economies of scale have been exhausted. This is the point beyond which further increases in output do not result in any significant decrease in average cost. Therefore, B is the correct answer.

The Level of Output at Which All Economies of Scale