The “minimum efficient scale” of operation in an industry is defined a

The “minimum efficient scale” of operation in an industry is defined as:

A) the smallest plant size that can be operated by firms in the industry.
B) the scale of operation at which economies of scale are exhausted.
C) the smallest number of firms that could effectively meet demand for an industry’s output.
D) the scale of operation by firms in an industry that is least efficient.

ANSWER

B