To achieve the minimum efficient scale in the long run,a firm must _____
A)charge the highest price possible.
B)produce where demand is unit elastic.
C)sell the most output possible.
D)maximize the cost of producing any given amount of output.
E)produce at minimum long-run average cost.

Question

Quizplus · Accepted Answer

The minimum efficient scale refers to the smallest level of output at which a firm can produce its product at the lowest possible long-run average cost. This means that the firm should aim to produce at the point where its long-run average cost curve reaches its minimum. Therefore, the best choice is E: produce at minimum long-run average cost.

To Achieve the Minimum Efficient Scale in the Long Run,a