Figure 13-7
-Refer to Figure 13-7.The efficient scale of production occurs at which quantity?

Question

Figure 13-7 
-Refer to Figure 13-7.The efficient scale of production occurs at which quantity?

Quizplus · Accepted Answer

The efficient scale occurs at the quantity where the long-run average total cost (LRATC) is at a minimum, which is shown as point C on the graph. At this point, the firm is producing at the lowest possible cost per unit of output, which allows it to maximize its profits. Any quantity below or above point C would result in higher costs and lower profits. Therefore, C is the best choice for efficient production.

Figure 13-7 -Refer to Figure 13-7.The Efficient Scale of Production Occurs at Production