Suppose that unit costs are the same at both 100 units of output and 150 units of output. Unit costs are higher at output levels less than 100 units and at output levels greater than 150 units. It follows that minimum efficient scale exists

Suppose that unit costs are the same at both 100 units of output and 150 units of output. Unit costs are higher at output levels less than 100 units and at output levels greater than 150 units. It follows that minimum efficient scale exists

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

om.
17
Suppose that unit costs are the same at both 100 units of output and 150 units of output. Unit costs are higher at output levels less
than 100 units and at output levels greater than 150 units. It follows that minimum efficient scale exists
O somewhere between 100 and 150 units.
Ⓒat 100 units.
O at 150 units.
O at less than 100 units.
O at greater than 150 units.

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