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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.[1] It is also the point at which the firm can achieve necessary economies of scale for it to compete effectively within the market.[2]
- ^ "Minimum Efficient Scale (MES): Definition With Graph". Investopedia. Retrieved 2024-04-12.
- ^ Besanko, David; Dranove, David; Shanley, Mark (2015). Economics of strategy (7th ed.). Hoboken: Wiley. ISBN 9781119042310.
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