Figure 11-5
-Refer to Figure 11-5.Identify the minimum efficient scale of production.

Name: Figure 11-5 -Refer to Figure 11-5.Identify the minimum efficient scale of production.
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Question

Figure 11-5 
-Refer to Figure 11-5.Identify the minimum efficient scale of production.

Quizplus · Accepted Answer

The minimum efficient scale of production is the level of output (in this case, quantity of units produced) at which average total cost is minimized. On the graph, this occurs at the point where the LRAC curve reaches its lowest point, which is at the intersection of the Q_{b and} curves. Therefore, the correct choice is B.

Figure 11-5 -Refer to Figure 11-5.Identify the Minimum Efficient Scale of Production