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:

Virginia Plan

Virginia’s delegation to the Constitutional Convention’s plan for a strong central government and a two-house legislature apportioned by population.

Two-House Legislature

A bicameral legislative system consisting of two separate chambers or houses, typically a lower house and an upper house, for the purpose of law-making.

Population

The number of individuals living in a specific area, region, or country at a given time.

Constitutional Convention

A formal assembly convened with the purpose of drafting, amending, or revising a constitution, such as the 1787 convention that drafted the Constitution of the United States.