If the minimum efficient scale in microwave oven production is 100,000 units per year,it implies that _____

Question

Quizplus · Accepted Answer

Minimum efficient scale refers to the level of production where average cost is minimized. This means that producing at a level below the minimum efficient scale would result in higher average costs. Therefore, the average cost of producing 50,000 microwave ovens is likely to be greater than the average cost of producing 100,000 microwave ovens, making option A the correct answer.

If the Minimum Efficient Scale in Microwave Oven Production Is