A total cost curve shows the largest amount of a product a firm can produce with a minimum cost.

Question

Quizplus · Accepted Answer

A total cost curve shows the various costs of producing different quantities of a product, not the largest amount that can be produced with minimum cost. The point where the total cost is lowest is called the "minimum efficient scale," which is not the same as the largest amount producible with minimum cost.

A Total Cost Curve Shows the Largest Amount of a Product