Efficiency is measured on the ___________ curve.

Name: Efficiency is measured on the ___________ curve.
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Question

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The ATC (average total cost) curve shows the cost per unit of output at different levels of production. It is used to measure the efficiency of a firm because the lower the ATC, the more efficient the firm is at producing output. Additionally, the ATC curve shows the minimum efficient scale (MES) which is the lowest point on the curve where the firm can produce at the lowest cost per unit.

Efficiency Is Measured on the ___________ Curve