In an Oligopoly, Minimum Efficient Scale Is Likely to Occur

question 24

True/False

In an oligopoly, minimum efficient scale is likely to occur at a level of output that is a large fraction of industry sales.

---

Definitions:

Sales

The trade of goods or services for financial compensation, which serves as the fundamental revenue generator for the majority of corporations.

Finished Goods Inventory

The stock of completed products ready for sale, representing one of the final stages in the production process.

Sales Forecast

An estimate of future sales, often based on historical data, current market trends, and forward-looking economic indicators, used for planning and decision-making purposes.

Production Units

The measure of output from a production process, with each unit representing a completed item.