Minimum Efficient Scale Is Defined as the Level of Output

question 310

Multiple Choice

Minimum efficient scale is defined as the level of output at which

• A)all economies of scale are exhausted.
• B)diminishing returns affect average total cost.
• C)the firm's long-run average total cost starts falling.
• D)the maximum output is produced.

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Definitions:

Financial Manager

A professional responsible for managing an organization’s financial health by planning and directing investment activities, developing financial strategies, and managing risks.

Long-Term Sources

Financing options available to a business that have a repayment period of more than one year, such as bonds or long-term loans.

Marketable Securities

Financial instruments that are easily convertible into cash, typically with high liquidity and short maturity periods, such as stocks and bonds.

Another Company

This term refers to an entity different from the one currently being discussed or involved.