Minimum Efficient Scale
Minimum efficient scale (MES) or efficient scale of production is a term used in industrial organization to denote the smallest output that a plant (or firm) can produce such that its long run average costs are minimized.
Read more about Minimum Efficient Scale: Computing, Relationship To Average Cost and Marginal Cost, Relationship To Market Structure
Famous quotes containing the words minimum, efficient and/or scale:
“There are ... two minimum conditions necessary and sufficient for the existence of a legal system. On the one hand those rules of behavior which are valid according to the system’s ultimate criteria of validity must be generally obeyed, and on the other hand, its rules of recognition specifying the criteria of legal validity and its rules of change and adjudication must be effectively accepted as common public standards of official behavior by its officials.”
—H.L.A. (Herbert Lionel Adolphus)
“The truly efficient laborer will not crowd his day with work, but will saunter to his task, surrounded by a wide halo of ease and leisure, and then do but what he loves best. He is anxious only about the fruitful kernels of time.”
—Henry David Thoreau (1817–1862)
“I have spent all my life under a Communist regime, and I will tell you that a society without any objective legal scale is a terrible one indeed. But a society with no other scale but the legal one is not quite worthy of man either.”
—Alexander Solzhenitsyn (b. 1918)