A firm is at its optimum size when ___________

Assessment: JAMB UTME - Economics - 2021 Subject: Economics

Question 1 Report

A firm is at its optimum size when ___________

Answer Details
A firm is at its optimum size when it produces the greatest output at a minimum cost. This means that the firm is operating at its most efficient level and is able to maximize its profits. While having a motive to increase output and ensuring that marginal cost is less than marginal revenue are important considerations, they do not necessarily guarantee that the firm is at its optimum size. The most important factor is to achieve the most efficient production level while minimizing costs.
Read lesson note on The Theory Of Production (JAMB)
Read lesson note on Theory Of Costs (JAMB)
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