The minimum efficient scale is
A) the quantity after which it makes no sense for a firm to produce.
B) the minimum quantity where a firm would be able to produce profitably.
C) the output level beyond which the firm will not experience scale economies.
D) the output level beyond which the firm will experience scale economies.

Question

Quizplus · Accepted Answer

The minimum efficient scale is the output level beyond which the firm will not experience scale economies. This means that beyond this level, the firm will not be able to reduce its average cost of production per unit any further, even if it increases the number of units produced. Therefore, it is the output level at which the firm achieves the lowest possible average cost of production.

The Minimum Efficient Scale Is