Minimum efficient scale is defined as the level of output at which
A)all economies of scale are exhausted.
B)diminishing returns affect average total cost.
C)the firm's long-run average total cost starts falling.
D)the maximum output is produced.

Question

Quizplus · Accepted Answer

Minimum efficient scale is the level of output at which all economies of scale are exhausted, meaning the firm has achieved the lowest possible long-run average total cost.

Minimum Efficient Scale Is Defined as the Level of Output