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Choose the correct statement. A. A​ firm's minimum efficient scale is the smallest quantity of output at which​ long-run average cost reaches its lowest level. B. A​ firm's minimum efficient scale increases when the number of people employed increases. C. At outputs greater than the minimum efficient​ scale, a firm experiences economies of scale. D. At outputs less than the minimum efficient​ scale, a firm experiences diseconomies of scale.

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Answer:

Option B

Explanation:

For any company, the minimum efficient scale of production reflects the minimum of the average total cost for the firm the left to the organization experience economies of scale and to the right of it the industrial organisation faces economies of scale. A​ firm's minimum efficient scale increases when the number of people employed increases.

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