Minimum Efficient Scale Is Defined as the Level of Output

question 310

Multiple Choice

Minimum efficient scale is defined as the level of output at which

• A)all economies of scale are exhausted.
• B)diminishing returns affect average total cost.
• C)the firm's long-run average total cost starts falling.
• D)the maximum output is produced.

---

Definitions:

Neural Connections

The links between neurons in the brain that facilitate the transmission of information.

Piaget's Theory

A theory of cognitive development that describes how children construct a mental model of the world, developed by Jean Piaget.

Problem Presentation

The manner in which a problem is laid out or disclosed to someone, influencing their understanding and method of solving it.

Deductive Reasoning

Deductive reasoning is a logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.