-Figure 11-10 shows the long-run market demand curve and the cost structure for a typical monopolistic competitor.The minimum efficient scale (MES)is
A)0
B)200 units
C)400 units
D)800 units
E)1,200 units

Question

-Figure 11-10 shows the long-run market demand curve and the cost structure for a typical monopolistic competitor.The minimum efficient scale (MES)is
A)0 
B)200 units 
C)400 units 
D)800 units 
E)1,200 units

Quizplus · Accepted Answer

The minimum efficient scale (MES) is the level of output at which a firm can produce at the lowest average cost. In the context of the question, 400 units is the output level where the firm achieves this efficiency.

-Figure 11-10 Shows the Long-Run Market Demand Curve and the Cost