When a firm is operating at its minimum efficient scale, its:

Question

When a firm is operating at its minimum efficient scale, its:​

Quizplus · Accepted Answer

At the minimum efficient scale, the firm is operating at the lowest possible long-run average cost of production, indicating the highest level of efficiency in utilizing its inputs to produce the desired output. In other words, the firm is producing at the point where it has achieved economies of scale and is taking full advantage of its resources. Thus, option (C) is the correct answer.

When a Firm Is Operating at Its Minimum Efficient Scale