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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Definitions:

Gear Teeth

The individual protrusions on the rim of a gear that interlock with those on another gear to transmit torque and motion.

Diametral Pitch

A measure of the fineness of the gear teeth, expressed as the number of teeth per inch of the gear's diameter.

Imaginary Circle

A conceptual circle often used in gear design to represent the pitch circle, where the teeth of gears theoretically engage.

Angular Addendums

Additional angular elements or modifications typically at the end of gear teeth to improve function or performance.