What is Minimum efficient scale?
The '''minimum efficient scale''' (MES) is the smallest output that an [[Industry|industrial]] plant (or firm) can produce such that its [[long run average cost]]s are minimised. The size of MES relative to [[Market economy|market]] [[Supply and demand|demand]] curve has a strong influence on market structure. It can also be defined as the minimum point in U-shaped long run average cost curve. [[Category:Economics]] {{stub}}