The "Minimum Efficient Scale" of Operation in an Industry Is

question 12

Multiple Choice

The "minimum efficient scale" of operation in an industry is defined as:

• A)the smallest plant size that can be operated by firms in the industry.
• B)the scale of operation at which economies of scale are exhausted.
• C)the smallest number of firms that could effectively meet demand for an industry's output.
• D)the scale of operation by firms in an industry that is least efficient.

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Definitions:

Common Stock

Equity ownership in a corporation, providing voting rights and a share in the company’s profits through dividends.

Held-to-Maturity Bonds

Bonds that an issuer has the intent and ability to hold until a defined maturity date.

Accrued Interest

Interest that has been earned but not yet received in cash or recorded by the payee.