The Minimum Efficient Scale Is Important in Determining

question 21

Multiple Choice

The minimum efficient scale is important in determining:

• A) the optimum level of input usage by a firm.
• B) the allocation of output between the multiple plants owned by a firm.
• C) the output elasticity of firms in the market.
• D) whether the firm's production function exhibits increasing, constant, or decreasing returns to scale.
• E) how many firms can profitably operate in a particular market.

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Definitions:

Corporations

Businesses that are legally recognized as separate entities from their owners, having their rights and liabilities.

Single Taxation

A tax system where income is taxed only once, typically referring to how corporate profits are taxed at either the corporate or shareholder level but not both.