What Is the Minimum Efficient Scale (MES)of Production

question 28

Multiple Choice

What is the minimum efficient scale (MES) of production?

• A)The point on an average cost curve where the cost per unit begins to decline more rapidly
• B)The minimum point on a U-shaped average cost curve
• C)The minimum level of production at a plant for it to be considered profitable
• D)The level of production for a small sized plant
• E)The threshold at which capacity is constraining for a firm's production

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Definitions:

Pound Sterling

The official currency of the United Kingdom, which is one of the world's oldest currencies still in use.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Temporal Method

A technique used in foreign currency translation that uses exchange rates based on the timing of the original transaction.

Remeasuring

The process of adjusting financial statements to reflect fair values or changes in exchange rates, often used in foreign currency translation and in fair value accounting.