Minimum efficient scale
A) is the point at which economies of scale begin for a particular firm.
B) is the lowest rate of output per unit of time at which long-run average costs reach a minimum for a particular firm.
C) applies only to firms with U-shaped long-run average cost curves.
D) is the point at which diseconomies of scale begin for a particular firm.

Question

Quizplus · Accepted Answer

The minimum efficient scale is the lowest rate of output per unit of time at which long-run average costs reach a minimum for a particular firm. It represents the optimal level of production where a firm achieves economies of scale but does not yet experience diseconomies of scale. It does not necessarily apply only to firms with U-shaped long-run average cost curves.

Minimum Efficient Scale