If the "Minimum Efficient Scale" in an Industry Is at 25

question 236

Multiple Choice

If the "minimum efficient scale" in an industry is at 25 percent of market sales, what is the maximum number of efficient firms the economy can support in this industry?

• A)75
• B)25
• C)10
• D)4

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Definitions:

31st Payment

The payment made as the thirty-first installment in a series of payments or financial obligations.

Amortized

The process of spreading out a loan into a series of fixed payments over time, which covers both the principal and the interest.

Compounded Monthly

Interest calculation strategy where interest is added to the principal sum every month, allowing the investment to grow at a faster pace.

Amortized

The process of gradually paying off debt through a series of fixed payments that include both interest and a portion of the principal.