What is minimum efficient scale? Minimum efficient scale is

A. the level of output at which a firm begins to experience economies of scale.

B. the level of output at which all diseconomies of scale are exhausted.

C. the level of output at which the long-run average cost of production begins to decline.

D. the level of output at which all economies of scale are exhausted.

E. the level of output at which the marginal cost of production reaches a minimum.

Question

Business

Jessie Sims

14 September, 15:22

What is minimum efficient scale? Minimum efficient scale is

A. the level of output at which a firm begins to experience economies of scale.

B. the level of output at which all diseconomies of scale are exhausted.

C. the level of output at which the long-run average cost of production begins to decline.

D. the level of output at which all economies of scale are exhausted.

E. the level of output at which the marginal cost of production reaches a minimum.

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Answers (1)

Know the Answer?

Cannon Keller · Answer 1

A) the level of output at which a firm begins to experience economies of scale.

Explanation:

Economies of scale are achieved when a company can proportional reduce its production costs by increasing their total level of production.

The minimum efficient scale would be the lowest level of production at which the company can achieve economies of scale.