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The Minimum Efficient Scale Is Important in Determining

Question 21

Multiple Choice

The minimum efficient scale is important in determining:


A) the optimum level of input usage by a firm.
B) the allocation of output between the multiple plants owned by a firm.
C) the output elasticity of firms in the market.
D) whether the firm's production function exhibits increasing, constant, or decreasing returns to scale.
E) how many firms can profitably operate in a particular market.

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