When a firm is at its minimum efficient scale of operation, it produces the
A. minimum rate of output consistent with lowest long-run marginal cost.
B. minimum rate of output at which long-run average cost is minimized.
C. maximum rate of output at which long-run average cost is minimized.
D. maximum rate of output consistent with lowest long-run marginal cost.
Answer: B
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A free market can be defined as a market structure where all exchanges are voluntary, and prices are free to fluctuate. Does a perfectly competitive market qualify as a free market?
What will be an ideal response?
The fact that developed countries have strong, widely attended university systems indicates that
(a) university expansion should be a development priority. (b) universities teach skills used on the job. (c) developing countries place too much stress on agriculture. (d) none of the above.