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What Is Minimum Efficient Scale? What Is Likely to Happen

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Essay

What is minimum efficient scale? What is likely to happen in the long run to firms that do not reach minimum efficient scale?


Definitions:

Life Expectancy

The average period that an individual is expected to live, based on statistical analysis.

Thomas Theorem

A theory in sociology stating that if people perceive a situation as real, it will have real consequences for them.

Situations

Specific instances or sets of conditions that affect individuals or groups at a particular time and place.

Primary Socialization

Is the process of acquiring the basic skills needed to function in society during childhood. Primary socialization usually takes place in a family.

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