Figure 7.10
-Refer to Figure 7.10.Identify the minimum efficient scale of production.

Name: Figure 7.10 -Refer to Figure 7.10.Identify the minimum efficient scale of production.
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Question

Figure 7.10 
-Refer to Figure 7.10.Identify the minimum efficient scale of production.

Quizplus · Accepted Answer

The minimum efficient scale of production is the lowest level of output at which a firm can produce at the lowest average cost. In Figure 7.10, this is typically represented by the point where the long-run average cost curve first reaches its minimum.

Figure 7.10 -Refer to Figure 7.10.Identify the Minimum Efficient Scale of Production