Share This Article:

Economic Definition of MES. Defined.

Offline Version: PDF

Term MES Definition: The abbreviation for minimum efficient scale, which is the quantity of production that places a firm at the lowest point on its long-run average cost curve. The minimum efficient scale is highly prized by economists because it achieves production of a good at the lowest possible opportunity cost. In other words, it's not possible to produced a good any cheaper than at the minimum efficient scale. At this quantity the production involves foregoing the least amount of other goods.

 

« merit good | MFC »

Permalink: https://glossary.econguru.com/economic-term/MES

Alphabetical Reference to Over 2,000 Economic Terms