-Refer to Figure 7-11. The minimum efficient scale of output is reached at what rate of output?
A) 10 000 workers
B) 5000 picture frames
C) 20 000 picture frames
D) 10 000 picture frames

Question

-Refer to Figure 7-11. The minimum efficient scale of output is reached at what rate of output?
A) 10 000 workers 
B) 5000 picture frames 
C) 20 000 picture frames 
D) 10 000 picture frames

Quizplus · Accepted Answer

The minimum efficient scale is the level of output at which long-run average costs are minimized. In this context, it is reached at 10,000 picture frames.