Minimum Efficient Scale Refers to the Lowest Level of Output

question 36

Multiple Choice

Minimum efficient scale refers to the lowest level of output at which

• A) the firm can earn a profit.
• B) average cost is minimized.
• C) the firm will operate.
• D) the average cost curve is downward sloping.

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Definitions:

Private Law

The branch of law that deals with relationships between individuals or institutions, as opposed to public law which concerns itself with the state and individuals.

Damages

Financial compensation ordered to be paid as a remedy for harm caused by a breach of duty or negligence.

Civil Law

A legal system based on written codes and statutes, as opposed to common law, which is based on judicial precedents and interpretations.

Criminal Law

The body of law that relates to crime and punishment, defining offenses and setting penalties for violations.