The minimum efficient scale (MES) is the output level that delivers the ________.
A) highest possible revenues
B) lowest possible costs
C) highest possible net
D) lowest margin

Question

Quizplus · Accepted Answer

The minimum efficient scale (MES) represents the lowest possible level of output at which a firm can produce its product at the lowest possible cost. Therefore, option B is the correct answer. Option A is incorrect because the MES is not necessarily the output level for the highest possible revenues. Option C is incorrect because the MES focuses on cost, not net. Option D is also incorrect because MES is not related to margin.

The Minimum Efficient Scale (MES) Is the Output Level That