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:

Color Brightness

A measure of how much light a color reflects, often related to its perceived intensity or saturation when viewed.

Degrees of Freedom

A parameter used in statistical tests that describes the number of independent ways by which a statistical estimate can vary.

F Statistic

A ratio used in statistical analysis to determine the significance of groups of variables in a regression or ANOVA framework.

Null Hypothesis

The default position that there is no relationship between two measured phenomena or no association among groups.