The efficient scale of production is the level of output at which:

CA Foundation · Business Economics · MTP · September 2026
The efficient scale of production is the level of output at which:
(A) A. AFC is minimum
(B) B. AVC is minimum
(C) C. ATC is minimum
(D) D. MC is minimum

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ATC is minimum

Topics: Theory of Production and Cost

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