The output level at which a firm's long-run average total cost is minimized is known as its
A)profit-maximizing output level
B)long-run marginal cost
C)minimum efficient scale
D)revenue maximization level
E)equilibrium cost structure

Question

Quizplus · Accepted Answer

The minimum efficient scale is the level of output at which a firm's long-run average total cost is at its minimum. At this level, the firm is able to achieve the lowest costs possible while still producing the desired quantity of output. This is important for firms to be able to stay competitive in the market and to maximize their profits in the long run.

The Output Level at Which a Firm's Long-Run Average Total