What Is True About a Minimum Efficient Scale

question 74

Multiple Choice

What is true about a minimum efficient scale?

• A)It shows the optimal quantity for a company to produce.
• B)It can be most efficiently maintained in large industries by increasing the level of production.
• C)It proves that the costs per unit decrease with increases in volume till they reach and then maintain the minimal level.
• D)It can be achieved by large industries during economic downturns because they can easily spread their fixed costs when demand declines.

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