The output level that delivers the lowest possible costs is the ________.
A) minimum efficient scale
B) average production level
C) marginal cost scale
D) median cost level

Question

Quizplus · Accepted Answer

The minimum efficient scale is the point at which a firm can produce its goods or services at the lowest possible cost. This is because the firm is able to take advantage of economies of scale, which means that as the level of output increases, the average cost of production decreases. Therefore, operating at the minimum efficient scale allows the firm to minimize its costs and maximize its profits.

The Output Level That Delivers the Lowest Possible Costs Is