Minimum Efficient Scale Is Defined as the Level of Output

question 285

True/False

Minimum efficient scale is defined as the level of output at which the short-run average total cost stops decreasing.

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Definitions:

Trade Barriers

Measures such as tariffs, quotas, and regulations that governments use to control the amount and type of goods and services imported or exported.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, underpinning international trade theories.

Absolute Advantage

The ability of an entity to produce a good or service at a lower cost per unit than other competitors using the same amount of resources.

Trade Surplus

A situation where a country's exports exceed its imports over a given period, indicating a positive balance of trade.