The Minimum Efficient Scale for a Firm Is the

question 161

Multiple Choice

The minimum efficient scale for a firm is the

• A)lowest rate of output at which long-run average cost is at a minimum
• B)lowest rate of output at which short-run average total cost is at a minimum
• C)lowest rate of output at which short-run average variable cost is at a minimum
• D)average of the rates of output at which long-run average cost is at a minimum
• E)average of the rates of output at which short-run average total cost is at a minimum

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Definitions:

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction, commonly used in the United States.

Business Entity Assumption

An accounting principle that treats a business as a separate legal entity from its owners, requiring separate accounting records.

Personal Financial Information

Data related to an individual's finances, including income, debt, investments, and credit history.

Sole Stockholder

An individual or entity that is the only owner of all the shares of a company.