At the minimum efficient scale
A)all possible economies of scale have not been exhausted.
B)the firm has achieved the lowest possible average cost of production.
C)any increases in the scale of operation will encounter further economies of scale.
D)marginal cost is at its minimum.

Question

Quizplus · Accepted Answer

The minimum efficient scale is the point at which the firm has achieved the lowest possible average cost of production. This means that any further increases in the scale of operation will not encounter further economies of scale. At the minimum efficient scale, the firm is operating at its most efficient level and any deviations from this scale may result in higher costs per unit produced.

At the Minimum Efficient Scale