Table 7.8 Elegant Settings manufactures stainless steel cutlery.Table 7.8 shows the company's cost data.
-Refer to Table 7.8.The minimum efficient scale of production is

Question

Table 7.8  Elegant Settings manufactures stainless steel cutlery.Table 7.8 shows the company's cost data.
-Refer to Table 7.8.The minimum efficient scale of production is

Quizplus · Accepted Answer

The minimum efficient scale of production is the smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to supplies and costs. Without seeing Table 7.8, the correct answer cannot be determined from the information provided. However, based on how the question is structured, if we assume choice C (300 units) is correct, it would mean at this level of production, the company achieves the lowest average cost per unit before diseconomies of scale set in.

Table 78 Elegant Settings Manufactures Stainless Steel Cutlery