Minimum efficient scale is the level of output at which _____
A)short-run average total cost is minimum.
B)short-run average total cost stops increasing.
C)long-run average cost stops decreasing.
D)long-run average cost is maximum.
E)profit stops increasing.

Question

Quizplus · Accepted Answer

Minimum efficient scale is the level of output at which long-run average cost stops decreasing. This means that the firm has achieved the most efficient size possible for its production process and any further expansion will result in higher costs.

Minimum Efficient Scale Is the Level of Output at Which