At the efficient scale of production,Group of answer choicesmarginal cost must be at a minimum.marginal cost must be rising.marginal cost should be falling.marginal cost must be constant.
Question
At the efficient scale of production,Group of answer choicesmarginal cost must be at a minimum.marginal cost must be rising.marginal cost should be falling.marginal cost must be constant.
Solution
At the efficient scale of production, marginal cost must be equal to marginal benefit. This is the point where the cost of producing an additional unit of output is exactly equal to the revenue gained from selling that additional unit. However, the options provided do not exactly match this concept.
If we have to choose from the given options, the closest one would be "marginal cost must be constant". This is because at the efficient scale, any changes in output should not significantly affect the marginal cost. However, it's important to note that this is a simplification and in reality, marginal costs can indeed change at the efficient scale.
Similar Questions
Which of the following is true at the efficient scale?Group of answer choicesTotal cost remains constant.Total cost increases.Total cost is at its minimum.Total cost declines.
Choice is necessitated by _____.*1 pointA. demand and supplyB. cost of productionC. production possibility curveD. scarcity of resources
Producing output at the lowest possible total cost per unit of production is:Multiple choice question.cost efficiency.marginal efficiency.productive efficiency.allocative efficiency.
What is true at the minimum efficient scale?Correct answer The firm has achieved the lowest possible average cost of production. Any increases in the scale of operation will encounter further economies of scale. You Answered Marginal cost is at its minimum. All possible economies of scale have not been exhausted.
The marginal cost curve is:Multiple choice question.increasing for all levels of output.decreasing for low levels of output, then begins increasing.decreasing for all levels of output.increasing for low levels of output, then begins decreasing.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.