What Does the Term "Minimum Efficient Scale" Mean

question 10

Multiple Choice

What does the term "minimum efficient scale" mean?

• A)The smallest size a firm can be in order to minimize both short-run and long-run average costs.
• B)The smallest size a firm can be in order to minimize short-run marginal cost.
• C)The smallest size a firm can be in order to minimize short-run average cost.
• D)The smallest size a firm can be in order to minimize long-run marginal cost.
• E)The smallest size a firm can be in order to minimize both short-run and long-run marginal cost.

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Definitions:

Prior Expectations

Presumptions or beliefs about future events or outcomes, formed based on past experiences or acquired knowledge.

Radically Disconfirms

A term that appears to indicate a strong or complete contradiction of expectations or beliefs, potentially leading to a change in those beliefs.

Sentence-Unscrambling Task

A cognitive task used in psychological experiments where participants must rearrange words to form correct sentences, often used to study priming effects.

Rudeness

Disrespectful or impolite behavior towards others, often characterized by a lack of consideration.