When a Firm Is at Its Efficient Scale of Operation

question 147

Multiple Choice

When a firm is at its efficient scale of operation it produces the

• A) maximum rate of output at which long-run average cost is at a minimum.
• B) minimum rate of output at which long-run average cost is at a minimum.
• C) maximum rate of output where we have lowest long-run marginal cost.
• D) minimum rate of output where we have lowest long-run marginal cost.
• E) minimum rate of output where we have highest long-run marginal cost.

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Definitions:

Performance Problems

Issues or difficulties encountered in the execution or achievement of tasks or objectives, often impacting productivity and efficiency.

Corrective Action

A process of identifying and resolving issues that prevents or corrects deviations from set standards or objectives, aiming to eliminate causes of non-conformities.

Statesmanship

The skill, wisdom, and respectability demonstrated by a leader in managing public affairs and making decisions.

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The status of being a member of a particular country or community, with associated rights and responsibilities.