Minimum Efficient Scale Refers to the

question 56

Multiple Choice

Minimum efficient scale refers to the

• A)smallest plant size a firm can utilize and still maintain production.
• B)lowest point on a given SRATC curve.
• C)output level at which the LRATC curve touches each SRATC curve.
• D)lowest output level at which average total costs are minimized.

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Definitions:

Division

A method of mathematical operation involving the process of dividing one number by another to determine how many times the divisor fits into the dividend.

Evaluate

The process of assessing or determining the significance, worth, or condition of something, typically by careful appraisal and study.

Fraction

A mathematical expression representing the division of one quantity by another, indicating parts of a whole.

Multiplication

A mathematical operation where a number is added to itself a certain number of times, symbolized by the ‘×’ sign.