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:

M/M/S

A queueing model denoting a system with multi-servers where both arrivals and service times are Markovian (memoryless and exponentially distributed).

M/D/1

A queueing model notation that represents a system with a Poisson arrival process, deterministic service time, and a single server.

Limited Population

A specific, restricted group of individuals or entities considered within a particular context or study.

Poisson Arrivals

A statistical distribution that models the number of events occurring in a fixed interval of time or space, assuming independence among arrivals.