Figure 11-11

Figure 11-11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATCₐ, ATCb and ATCc.
-Refer to Figure 11-11.The minimum efficient scale of output is reached at what rate of output?

Question

Figure 11-11
  
Figure 11-11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATCₐ, ATCb and ATCc.
-Refer to Figure 11-11.The minimum efficient scale of output is reached at what rate of output?

Quizplus · Accepted Answer

The minimum efficient scale of output is the point on the long-run average cost curve where the curve stops declining and becomes flat. In this graph, that point is reached at 10,000 picture frames. Therefore, the best answer is D.

Figure 11-11 Figure 11-11 Illustrates the Long-Run Average Cost Curve for a Average