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netineya [11]
2 years ago
11

The minimum efficient scale is:Group of answer choicesthe minimum output level where the firm’s average total costs are lowest

.the output level where the firm’s average total costs will increase.the minimum quantity where a firm would be able to produce profitably.the quantity after which it makes no sense for a firm to produce.
Business
1 answer:
Ahat [919]2 years ago
6 0

Answer:

the minimum output level where the firm's average total costs are lowest.

Explanation:

When we are analyzing a firm's long-run average cost (LRAC) curve, the minimum efficient scale is the lowest point or range on the curve. This means that at this point or range, minimum production costs are achieved. It is supposed to be the point or range at which the firm should be able to maximize its profits, although that doesn't only depend on costs but also on revenues. The point at which profits are maximized is given by the intersection of the marginal revenue curve and the minimum efficient scale.  

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