Minimum Efficient Scale Is the Output at Which

question 14

Multiple Choice

Minimum efficient scale is the output at which:

• A) long-run average cost is first minimized.
• B) long-run average cost first equals long-run marginal cost.
• C) short-run average cost equals long-run average cost for the first time.
• D) short-run marginal cost equals long-run marginal cost for the first time.
• E) diseconomies are first overcome and then economies of scale set in.

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