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Minimum efficient scale

In industrial organization, the minimum efficient scale (MES) or efficient scale of production is the lowest point where the plant (or firm) can produce such that its long run average costs are minimized with production remaining effective. It is also the point at which the firm can achieve necessary economies of scale for it to compete effectively…

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Measurement of the MES

Economies of scaleAverage costMarginal costFixed costs
4 related topics

Relationship to market structure

Market structureOligopolyMonopoly
3 related topics

MES in L-shaped cost curve

Diseconomies of scaleVertical integration
2 related topics

Overview

Industrial organizationLong run average costsCompete effectively
3 related topics

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Overview

Measurement of the MES

Relationship to market structure

MES in L-shaped cost curve

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Minimum efficient scale

Nodes17
Edges16
Triples12
Avg. degree1.88
Density0.117647
Components1

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Minimum efficient scale

Top relations

related to MES in L-shaped cost curve · 9
Minimum efficient scale → For, However, In, L-shaped, MES, Modern, Secondly, Thirdly, U-shaped
related to Relationship to market structure · 3
Minimum efficient scale → For, However, The

Important terminology Word statistics

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Important terminology

scale cost firm average minimum efficient market economies production curve mes number firms l-shaped marginal likely size long run costs

Entity relationships Subject–Predicate–Object triples

SubjectPredicateObjectConfidenceSrc
Minimum efficient scalerelated to MES in L-shaped cost curveModern0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveU-shaped0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveL-shaped0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveIn0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveMES0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveHowever0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveFor0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveSecondly0.60section
Minimum efficient scalerelated to MES in L-shaped cost curveThirdly0.60section
Minimum efficient scalerelated to Relationship to market structureThe0.60section
Minimum efficient scalerelated to Relationship to market structureFor0.60section
Minimum efficient scalerelated to Relationship to market structureHowever0.60section

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