Asked by DM KHAN BHUTTO on Jun 06, 2024
Verified
Refer to Figure 13-5. The efficient scale of production occurs at which quantity?
A) A
B) B
C) C
D) D
Efficient Scale
The level of production at which a firm's average costs are minimized, and efficiency is maximized.
Production
The process of creating goods and services through the combination of labor, materials, and technology.
Quantity
The amount or number of a material or immaterial good or service.
- Analyze the relationship between marginal cost, average total cost, and the production efficiency scale.
Verified Answer
NL
Nicholas LaMotheJun 06, 2024
Final Answer :
C
Explanation :
The efficient scale of production is the quantity of output at which average total cost is minimized. In the given options, point C represents the quantity at which the average total cost curve reaches its lowest point, indicating the efficient scale of production.
Learning Objectives
- Analyze the relationship between marginal cost, average total cost, and the production efficiency scale.