Minimum efficient scale refers to the
A)smallest plant size a firm can utilize and still maintain production.
B)lowest point on a given SRATC curve.
C)output level at which the LRATC curve touches each SRATC curve.
D)lowest output level at which average total costs are minimized.

Question

Quizplus · Accepted Answer

Minimum efficient scale is the smallest output level at which a firm can minimize its long-run average total costs, indicating the most efficient scale of operation for cost minimization.

Minimum Efficient Scale Refers to the