Where would we find a firm's minimum efficient scale of production?

Question

Quizplus · Accepted Answer

The minimum efficient scale of production refers to the lowest level of output at which a firm can produce its goods in the most cost-efficient manner. This is typically where the firm's long-run average total cost (LRATC) curve reaches its lowest point. At this point, the firm is enjoying economies of scale, where the cost per unit of output decreases as output increases. Therefore, at the minimum efficient scale, the firm is maximizing its efficiency and minimizing its costs.

Where Would We Find a Firm's Minimum Efficient Scale of Production