The process of settling transactions between banks. Because so many transactions take place between banks on a given day, bank clearing exists to process what each party owes or is owed in a central location so the least amount of money actually changes hands. For example, suppose Bank A owes $1 million to Bank B in cleared checks, but Bank B owes Bank A $1.5 million.
In economics, the minimum efficient scale is described as the lowest level on the long-run average total cost curve. It is also called the output of long-run productive efficiency. The minimum efficient scale is never a single level of output; rather, it is a range of outputs whereby the average cost is reduced. The minimum efficient scale differs from one economic sector to another due to the varying cost structures.
AACSB: Analytic BT: Knowledge Learning Objective: 6-1 Schiller - Chapter 06 #15 Topic: THE PRODUCTION FUNCTION 16. (p. 119) When a firm produces at a technically efficient output level, it is: A. Producing the output at the minimum MC curve. B. Using the fewest resources to produce a good or service.