Figure 6.11 Figure 6.11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATC a , ATC b , and ATC c .
-Refer to Figure 6.11.At what rate of output is the minimum efficient scale of output reached?

Question

Figure 6.11  Figure 6.11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATC a , ATC b , and ATC c .
-Refer to Figure 6.11.At what rate of output is the minimum efficient scale of output reached?

Quizplus · Accepted Answer

The minimum efficient scale of output is reached at 10,000 picture frames, as this is the point at which the average cost curve is at its minimum.

Figure 611 Figure 6