What Is True About a Minimum Efficient Scale

question 33

Multiple Choice

What is true about a minimum efficient scale?

• A) It shows the optimal quantity for a company to produce.
• B) It can be most efficiently maintained in large industries by increasing the production.
• C) It proves that the costs per unit decrease with increases in volume till they reach and then maintain the minimal level.
• D) It can be achieved by large industries during economic downturns because they can easily spread their fixed costs when demand declines.

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Definitions:

Majority Voting

A decision-making process where the option that receives more than half of the votes cast by eligible participants wins.

Median Voter

A theoretical concept suggesting that the outcome of a majority vote is likely to reflect the preferences of the median, or middle, voter when preferences are aligned along a single dimension.

Election Outcome

The result of a voting process in which a person or proposal is selected among a set of candidates or options.

Deregulation

The removal of most or even all of the government regulation and laws designed to supervise an industry. Sometimes undertaken to combat regulatory capture.