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Economic Definition of minimum efficient scale. Defined.

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Term minimum efficient scale Definition: 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.

 

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