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From course:

Economics A Level

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Question:

What is the Minimum Efficient Scale of Production?

Author: go kys



Answer:

-Lowest Level of Put at where the Minimum Possible Average Cost is Possible. This happens when Returns to Scale become Constant. -There can be a Range of Production Levels where LRAC is Minimal, or just One -MES can be Different across Industries - High Fixed Costs has Large MES which can Favour Large Firms more.


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go kys
go kys