Question

true or false?

1.the minimum efficient level of production refers to the production level in the long run that spreads setup costs out justjust enough to make production profitable.

Answer 1

TRUE

The given statement the minimum efficient level of production refers to the production level in the long run that spreads setup costs out just enough to make production profitable is a true statement

• The minimum efficient level of production is nothing but cost of an input for which the minimum required amount of production should be completed before the input mature to be economically feasible.
• So there can be minimum production set up before the input is economically feasible to make production profitable

Thanks