The lowest rate of output per unit of time at which long-run average costs for a particular firm are at a minimum is
A) economies of scale.
B) diseconomies of scale.
C) constant returns of scale.
D) minimum efficient scale.

Question

Quizplus · Accepted Answer

The lowest rate of output per unit of time at which long-run average costs for a particular firm are at a minimum is called the minimum efficient scale. This is the point at which a firm is producing at the lowest possible average cost, indicating that the firm is operating efficiently. Therefore, choice D is the correct answer.

The Lowest Rate of Output Per Unit of Time at Which