-Refer to Table 7-8. What is the minimum efficient scale of production?
A) 100 units
B) 200 units
C) 300 units
D) 400 units

Question

Quizplus · Accepted Answer

The minimum efficient scale of production is the point at which the firm is producing at the lowest possible average cost. In this table, the lowest average cost is achieved when producing 300 units, which has an average cost of $7.50. Therefore, C is the best choice as it reflects the minimum efficient scale of production.