When a Firm Is Operating at Its Minimum Efficient Scale

question 32

Multiple Choice

When a firm is operating at its minimum efficient scale, its:​

• A)short-run average total cost of production is minimized.
• B)long-run marginal cost of production is minimized.
• C)long-run average cost of production is minimized.
• D)marginal revenue is less than the marginal cost.
• E)total revenue is just equal to the total cost.

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Definitions:

Time Inconsistency

Describes a situation where a person's preferences change over time in such a way that what they prefer at one point in time is inconsistent with what they will prefer at another time.

Self-Control Problems

Refers to the difficulty individuals have in restraining their impulses or desires, often leading to challenges in decision-making that affect long-term goals.

Myopia

The lack of foresight or long-term planning, focusing only on the short-term gains or outcomes.

Present Concern

Current issues or worries that are relevant or impacting an individual or group at the moment.