The Minimum Efficient Scale Is

question 137

Multiple Choice

The minimum efficient scale is

• A) the level of output where diminishing returns have not set in yet.
• B) the plant size that yields the most profit.
• C) level of operation where long-run average costs are lowest.
• D) the smallest output level where the firm finally reaches productive efficiency.

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Definitions:

Placebo Effect

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Natural Recovery

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