It is important for a firm to know its minimum efficient scale of production because that is where

Name: It is important for a firm to know its minimum efficient scale of production because that is where
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Knowing its minimum efficient scale of production helps a firm to understand the level of output at which it can produce at the lowest long-run average total cost. This helps the firm to optimize its production and minimize costs, thereby maximizing profitability.

It Is Important for a Firm to Know Its Minimum