The right size of firm is determined by the minimum point on its short-run average cost curve.

Name: The right size of firm is determined by the minimum point on its short-run average cost curve.
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The right size of a firm is determined by the minimum point on its long-run average cost curve, not the short-run average cost curve. The long-run average cost curve reflects the firm's cost of production when all inputs are variable, allowing for the identification of the most efficient scale of operation.

The Right Size of Firm Is Determined by the Minimum