Asked by Annabelle Beauchamp on May 28, 2024
Verified
Minimum efficient scale varies by industry.
Minimum Efficient Scale
The minimum efficient scale is the lowest point of production where a firm can achieve the economies of scale, reducing its cost per unit to the minimum.
- Understand the principles of economies and diseconomies of scale.
Verified Answer
SS
Samuel SeyoumMay 29, 2024
Final Answer :
True
Explanation :
Minimum efficient scale (MES) refers to the smallest scale at which a firm can produce its goods or services at a competitive cost. This scale varies significantly across different industries due to differences in technology, capital requirements, and market demand.
Learning Objectives
- Understand the principles of economies and diseconomies of scale.
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