Minimum efficient scale is the output at which:
A) long-run average cost is first minimized.
B) long-run average cost first equals long-run marginal cost.
C) short-run average cost equals long-run average cost for the first time.
D) short-run marginal cost equals long-run marginal cost for the first time.
E) diseconomies are first overcome and then economies of scale set in.

Question

Quizplus · Accepted Answer

Minimum efficient scale is the output at which long-run average cost is first minimized, meaning that it is the point where the firm achieves the lowest possible unit cost for a given level of output.

Minimum Efficient Scale Is the Output at Which