It Is Important for a Firm to Know Its Minimum

question 144

Multiple Choice

It is important for a firm to know its minimum efficient scale of production because that is where

• A) it faces the least amount of competition.
• B) its tax burden will be lowest.
• C) long-run costs are minimized.
• D) long-run average total cost is greatest.
• E) it turns into a monopoly.

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Definitions:

Utility

A term used to describe services provided to the public, such as water, electricity, natural gas, and sewage treatment.

Intrusive Environment

A setting or situation where privacy is limited, and external factors significantly affect personal space or work conditions.

Systematically

Done according to a fixed plan or system; methodical.