The Smallest Size at Which Long-Run Average Cost Is at Its

question 100

Multiple Choice

The smallest size at which long-run average cost is at its lowest level is called

• A) the minimum efficient scale.
• B) the maximum efficient scale.
• C) economies of scale.
• D) diseconomies of scale.

---

Definitions:

Inventory Turnover

A metric indicating the number of times a company has sold and replaced inventory over a given period; it measures the efficiency of inventory management.

Inventory Turnover

A proportion illustrating the rate at which a firm's inventory cycles through sales and replacement in a given period, reflecting on the proficiency of inventory control.

Year 2

Often used to signify the second year of a particular time frame, such as a business plan, investment period, or educational program.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.