When a Firm Is at Its Minimum Efficient Scale of Operation

question 163

Multiple Choice

When a firm is at its minimum efficient scale of operation, it produces the

• A) maximum rate of output at which long-run average cost is minimized.
• B) minimum rate of output at which long-run average cost is minimized.
• C) maximum rate of output consistent with lowest long-run marginal cost.
• D) minimum rate of output consistent with lowest long-run marginal cost.

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Definitions:

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