Minimum Efficient Scale Is the Level of Output at Which

question 54

Multiple Choice

Minimum efficient scale is the level of output at which _____

• A)short-run average total cost is minimum.
• B)short-run average total cost stops increasing.
• C)long-run average cost stops decreasing.
• D)long-run average cost is maximum.
• E)profit stops increasing.

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Definitions:

Price-Taker Market

A market situation where individual buyers and sellers have no influence over the price of a product due to the product's homogeneity and the presence of many participants.

Profit-Maximizing Firm

A company that operates in a way that its primary goal is to achieve the highest possible profit.

Market Price

The current price at which a good or service can be bought or sold in a marketplace.

Occupational Safety Laws

Regulations designed to ensure safe and healthy working conditions for employees by setting and enforcing standards.