The Efficient Scale of a Firm Is Achieved When

question 143

Multiple Choice

The efficient scale of a firm is achieved when:

• A)average variable cost is minimised
• B)fixed costs are spread over the most units
• C)marginal costs are at a minimum
• D)average total costs are minimised

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Definitions:

Pay

Compensation received by an employee from an employer in exchange for performing a job.

Thirty Year Mortgage

A long-term home loan typically repaid over 30 years through fixed monthly payments, often with a fixed interest rate.

Monthly Payment

The amount paid each month on a loan, mortgage, or other debt obligation.

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, accounting for fees and compound interest.