Where Would We Find a Firm's Minimum Efficient Scale of Production

question 145

Multiple Choice

Where would we find a firm's minimum efficient scale of production?

• A) at the lowest point on its long-run average total cost curve
• B) at the highest point on its long-run average total cost curve
• C) in the middle of its long-run average total cost curve
• D) at the highest point on its long-run average fixed cost curve
• E) in the middle of its long-run average variable cost curve

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Definitions:

Elaboration Likelihood Model

A theory in social psychology that explains how attitudes are formed and changed through two routes of persuasion: central and peripheral.

Persuasion

The act of convincing someone to believe or do something through reasoning or argument.

Individual's Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject.

Ability

The capacity or skill to do something effectively, such as solving problems, performing tasks, or adapting to situations.