To achieve the minimum efficient scale in the long run, a firm must:
A)charge the highest price possible.
B)produce where demand is unit elastic.
C)sell the most output possible.
D)minimize the cost of producing any given amount of output.
E)produce at minimum long-run average cost.

Question

To achieve the minimum efficient scale in the long run, a firm must:​
A)charge the highest price possible.
B)produce where demand is unit elastic.
C)sell the most output possible.
D)minimize the cost of producing any given amount of output.
E)produce at minimum long-run average cost.

Quizplus · Accepted Answer

To achieve the minimum efficient scale in the long run, a firm must produce at minimum long-run average cost. This means that they are optimizing their production process and minimizing their costs per unit of output. By doing this, they are able to produce the most output possible at the most efficient cost, allowing them to maximize their profits.

To Achieve the Minimum Efficient Scale in the Long Run