Minimum efficient scale refers to the
A)minimum size plant in any given industry.
B)minimum point on the short-run average total cost curve.
C)output level when economies of scale first set in.
D)output level when diseconomies of scale first set in.
E)lowest output level at which average total costs are minimized.

Question

Quizplus · Accepted Answer

Minimum efficient scale is the smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to supplies and costs. It is the point at which a company can produce its goods cheaply enough to compete in the market.

Minimum Efficient Scale Refers to the