At the Minimum Efficient Scale

question 107

Multiple Choice

At the minimum efficient scale

• A)all possible economies of scale have not been exhausted.
• B)the firm has achieved the lowest possible average cost of production.
• C)any increases in the scale of operation will encounter further economies of scale.
• D)marginal cost is at its minimum.

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Definitions:

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Independent Variable

A variable in an experiment or model that is manipulated or changed to observe its effect on a dependent variable.