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.
Question
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.
Solution
At the efficient scale, total cost is at its minimum. This is because the efficient scale of a firm is the level of production where average total costs are minimized. If a firm produces at its efficient scale, it is operating at the lowest point on its average total cost curve.
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