A firm is productively efficient if it produces at the minimum point of its: a. average variable...
Question:
A firm is productively efficient if it produces at the minimum point of its:
a. average variable cost curve.
b. marginal cost curve.
c. average total cost curve.
d. total cost curve.
The Average Total Cost:
The average total cost is a curve that gives the average per-unit cost of producing a given volume of output. The average total cost curve is a parabola that opens upwards and has the marginal cost cutting it at its minimum point.
Answer and Explanation: 1
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The correct answer is: c. average total cost curve.
The minimum efficient scale is the point at the minimum of the average total cost. When a firm...
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Economies & Diseconomies of Scale
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Chapter 9 / Lesson 4
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Define economies of scale and diseconomies of scale. Compare economies of scale and diseconomies of scale using the graph and subsequent examples. Learn about the various causes of diseconomies of scale.
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