A minimum efficient scale occurs at the smallest level of output at which a firm can minimize long-run average costs

Economics Dec 07, 2020

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

Expert Solution

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.

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