The Minimum Efficient Scale Is

question 137

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) 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:

Avoidance/Avoidance

A decision-making conflict where an individual has to choose between two equally unattractive options, often leading to anxiety or stress.

Approach/Approach

A decision-making conflict situation where an individual must choose between two equally appealing options.

Approach/Avoidance

Psychological concepts that describe an individual's motivation to move towards or away from a particular stimulus or situation.

Double Approach/Avoidance

A psychological conflict characterized by being drawn to and repelled by the same goal or option, which has both positive and negative aspects.