The Minimum Efficient Scale Is

question 14

Multiple Choice

The minimum efficient scale is

• A)the level of output where diminishing returns have not set in yet.
• B)the plant size that yields the most profit.
• C)the level of operation where long-run average costs are lowest.
• D)the smallest output level where the firm finally reaches productive efficiency.

Interpret and solve practical problems involving equivalent ratios.

Understand the concept of equivalent ratios and how to reduce them to their smallest terms.

Apply principles of proportions to solve for unknown quantities.

Understand and apply the concept of lowest terms in ratios.

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