When a firm is operating at its minimum efficient scale,its _____

Question

Quizplus · Accepted Answer

When a firm is operating at its minimum efficient scale (MES), it is at the level of output where it can produce the desired quantity of goods at the lowest possible long-run average cost. This means that the firm has optimized its production process to minimize costs, taking into account all factors of production used in the long run. Therefore, it is the long-run average cost that is minimized at the MES. Choices A, D, and E are incorrect because they do not necessarily hold true when the firm is operating at its MES.

When a Firm Is Operating at Its Minimum Efficient Scale,its