When a firm is operating at an efficient scale,
A)average variable cost is minimized.
B)average fixed cost is minimized.
C)average total cost is minimized.
D)marginal cost is minimized.

Question

Quizplus · Accepted Answer

When a firm is operating at an efficient scale, it means that it is producing its output at the lowest possible cost per unit, which occurs when average total cost is minimized. This is achieved by optimizing the use of both fixed and variable inputs to achieve economies of scale. Therefore, choice C is the best answer.

When a Firm Is Operating at an Efficient Scale