The following figure shows the long-run average cost curve of a firm.
Figure 6-1

-Refer to Figure 6-1. What is the quantity that the firm will produce if it is operating at minimum efficient scale?
A) E
B) A
C) C
D) D
E) B

Question

The following figure shows the long-run average cost curve of a firm.
Figure 6-1
 
-Refer to Figure 6-1. What is the quantity that the firm will produce if it is operating at minimum efficient scale?
A) E 
B) A 
C) C 
D) D 
E) B

Quizplus · Accepted Answer

The minimum efficient scale is the point where the long-run average cost curve reaches its lowest point, which is at point C in the given figure. The quantity that the firm will produce at minimum efficient scale is Qc. Therefore, the best choice is C.

The Following Figure Shows the Long-Run Average Cost Curve of a Firm