The Minimum Efficient Scale for a Firm Is the

question 161

Multiple Choice

The minimum efficient scale for a firm is the

• A)lowest rate of output at which long-run average cost is at a minimum
• B)lowest rate of output at which short-run average total cost is at a minimum
• C)lowest rate of output at which short-run average variable cost is at a minimum
• D)average of the rates of output at which long-run average cost is at a minimum
• E)average of the rates of output at which short-run average total cost is at a minimum

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Definitions:

No Par Value Stock

Shares issued without a nominal or face value, where the value of the stock is determined by the price investors are willing to pay for it in the market.

Stated Capital

The amount of capital reported by a company that represents the par value of the stock that has been issued and is often used in legal terms to determine how much capital the company can legally declare as dividends.

Revised Act

Refers to an updated or amended version of a law or statute.

Distribution

The process of allocating or dispersing goods, resources, or dividends among multiple recipients.