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Homework answers / question archive / A minimum efficient scale occurs at the smallest level of output at which a firm can minimize long-run average costs
A minimum efficient scale occurs at the smallest level of output at which a firm can minimize long-run average costs.
a. True
b. False
It is a true statement that minimum long-run average cost at the smallest level of output because long-run average cost is less than the production level. It shows the minimum efficient scale of a firm in an economy. It means maximum production at a lesser cost. It shows the efficiency at that level of output.