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:

Specific Performance

A legal remedy requiring a party to perform a specific act, often the completion of a contract, rather than paying damages for non-performance.

Contract Law

The body of law governing the formation, execution, and enforcement of agreements between parties.

Frustration

A legal doctrine freeing both parties from their contractual obligations if an unexpected event renders the contract impossible to fulfill.

Contract Law

The body of law that governs the formation, performance, and enforcement of agreements between parties.