-Refer to the Above Figure

question 367

Multiple Choice

-Refer to the above figure. Minimum efficient scale is at output rate

• A) .
• B) .
• C) .
• D) .

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Definitions:

Production

The process of creating goods or services through the combination of labor, materials, and capital.

Bushels

A measurement of volume mainly used in the United States for quantifying agricultural products.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the average cost of production excluding fixed costs.