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Basic Question 4 of 7
The smallest quantity of output at which long-run average cost reaches its lowest level is ______.
B. diseconomies of scale
C. constant returns to scale
D. economies of scale
A. minimum efficient scale
B. diseconomies of scale
C. constant returns to scale
D. economies of scale
User Contributed Comments 3
| User | Comment |
|---|---|
| hdavid57 | Does minimum efficient scale occur at the point where economy of scale and constant returns to scale meet? |
| rfvo | True...........The minimum efficient scale (MES) is the output for a business in the long run where the intern. al economies of scale have been fully exploited. It corresponds to the lowest point on the long run average total cost curve and is also known as the output of long run productive efficiency. |
| Huricane74 | Minimum Efficient Scale https://www.youtube.com/watch?v=rcVnIk8GLaw |
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Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2025 Level I Curriculum, Volume 1, Module 1.