If the Minimum Efficient Scale in the Production of Aluminum

question 110

True/False

If the minimum efficient scale in the production of aluminum exceeds the quantity of aluminum any individual siding producer buys, siding producers should integrate backward into aluminum production.

---

Definitions:

Marginal Revenue Product

The additional revenue generated for each additional unit of input, such as labor or capital, used in the production process.

Marginal Resource Cost

The increase in total cost that results from utilizing one additional unit of a resource in production.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource, such as labor or raw materials.