Figure 11-6 Figure 11-6 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: ATCa,ATCb and ATCc.
-Refer to Figure 11-6.The minimum efficient scale of output is reached at what rate of output?

Question

Figure 11-6  Figure 11-6 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: ATCa,ATCb and ATCc.
-Refer to Figure 11-6.The minimum efficient scale of output is reached at what rate of output?

Quizplus · Accepted Answer

The minimum efficient scale of output is where the long-run average cost curve is at its lowest point, which occurs at a rate of output of 10,000 picture frames. Therefore, the best choice is D.

Figure 11-6 Figure 11-6 Illustrates the Long-Run Average Cost