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What Is Minimum Efficient Scale? What Is Likely to Happen

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Essay

What is minimum efficient scale? What is likely to happen in the long run to firms that do not reach minimum efficient scale?


Definitions:

Expectancy Theories

Psychological theories suggesting that individuals are motivated to act based on their expectations of outcome and the value they place on the success.

Increasing Motivation

Actively enhancing the desire, drive, or willingness to achieve a particular goal or to engage in specific behavior.

Calories Consumed

The amount of energy intake from food and drink by an organism, measured in calories.

Wheat

A cereal grain that is a staple food for much of the world's population, used to make products like bread, pasta, and pastries.

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