Minimum Efficient Scale Is the Level of Output at Which

question 50

Multiple Choice

Minimum efficient scale is the level of output at which

• A)short-run average total cost stops decreasing
• B)short-run average total cost stops increasing
• C)long-run average cost stops decreasing
• D)long-run average cost stops increasing
• E)profit stops increasing

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Definitions:

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another, often measured by GDP.

Population Growth

The increase in the number of individuals in a population, often measured as a percentage of the total population over a specific time period.

Catch-Up Effect

The hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies, allowing them to "catch up" over time.

Real GDP Per Person

A measure of the economic output of a country per individual adjusted for inflation, reflecting the average living standards.