What Is the Minimum Efficient Scale

question 185

Multiple Choice

What is the minimum efficient scale?

• 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.

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Definitions:

Observational Learning

A learning process through which behavior is acquired by watching and imitating others.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior conditioning or learning.

Shaping

A method of training by which successive approximations toward a desired behavior are reinforced.

Partial Reinforcement

A conditioning principle in which a reward or punishment is not administered every time the desired response is performed, leading to more resilient behavior patterns.