Exhibit 21-5

Refer to Exhibit 21-5. The minimum efficient scale is at
A)point A.
B)point B.
C)point C.
D)point D.
E)points B and C.

Question

Exhibit 21-5 ​

Refer to Exhibit 21-5. The minimum efficient scale is at
A)point A. 
B)point B. 
C)point C. 
D)point D. 
E)points B and C.

Quizplus · Accepted Answer

Point B represents the minimum efficient scale, as it is where the long-run average cost is at its lowest point before increasing again as output continues to increase. Points A and C are both below the minimum efficient scale and thus not the best choice. Point D is above the minimum efficient scale and would likely result in higher costs than necessary. Therefore, the best choice is point B.

Exhibit 21-5 ​ Refer to Exhibit 21-5. the Minimum Efficient Scale Is at Efficient

Exhibit 21-5 Refer to Exhibit 21-5. the Minimum Efficient Scale Is at Efficient