When a Firm Is Operating at Its Minimum Efficient Scale,its

question 105

Multiple Choice

When a firm is operating at its minimum efficient scale,its _____

• A)short-run average total cost of production is minimized.
• B)long-run marginal cost of production is minimized.
• C)long-run average cost of production is minimized.
• D)marginal revenue is less than its marginal cost.
• E)total revenue is just equal to its total cost.

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Definitions:

Human Labour

The effort, physical or mental, that people contribute to the production of goods and services.

Means Of Production

The physical, non-human inputs like factories, machines, and tools used for the production of economic goods.

Human Behaviour

The range of behaviors exhibited by humans and which are influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and/or genetics.

Interaction

The reciprocal action or influence between two or more entities or substances, often resulting in a change.