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Minimum efficient scale information


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
  1. ^ "Minimum Efficient Scale (MES): Definition With Graph". Investopedia. Retrieved 2024-04-12.
  2. ^ Besanko, David; Dranove, David; Shanley, Mark (2015). Economics of strategy (7th ed.). Hoboken: Wiley. ISBN 9781119042310.

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Minimum efficient scale

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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...

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Monopolistic competition

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or minimum efficient scale. Minimum efficient scale is the level of production at which the long-run average cost curve first reaches its minimum. It...

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Free entry

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the product so that each is producing too little to be at its minimum efficient scale) can readily leave the market. However, exiting a market may involve...

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Diseconomies of scale

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benefits of scale (e.g. concentration of spending on R&D and market power) to trump diseconomies of scale. Ringelmann effect Minimum efficient scale Too big...

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MES

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Mesitylene Manufacturing execution systems, to track materials Minimum efficient scale of production Mes, Albania, location of the Mesi Bridge Polonia...

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Average cost

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pricing, referred to as the average cost pricing equilibrium. Minimum efficient scale: Marginal or average costs may be nonlinear, or have discontinuities...

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Economies of scale

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economies of scale. The simple meaning of economies of scale is doing things more efficiently with increasing size. Common sources of economies of scale are purchasing...

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Socially optimal firm size

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(producing at the minimum of their long-run average cost curve). Diseconomies of scale Economies of scale Minimum efficient scale Bureaucratic limits...

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Outline of industrial organization

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and efficiency returns to scale and isoclines minimum efficient scale plant capacity Economies of density Economies of scale the efficiency consequences...

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Minimum spanning tree

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finding a minimum spanning tree was developed by Czech scientist Otakar Borůvka in 1926 (see Borůvka's algorithm). Its purpose was an efficient electrical...

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Monopoly

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example, the industry is large enough to support one company of minimum efficient scale then other companies entering the industry will operate at a size...

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Kardashev scale

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The Kardashev scale (Russian: Шкала́ Кардашёва, romanized: Shkalá Kardashova) is a method of measuring a civilization's level of technological advancement...

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Temperature

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scales are the Celsius scale with the unit symbol °C (formerly called centigrade), the Fahrenheit scale (°F), and the Kelvin scale (K), the latter being...

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Modern portfolio theory

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calculations of the efficient frontier. In matrix form, for a given "risk tolerance" q ∈ [ 0 , ∞ ) {\displaystyle q\in [0,\infty )} , the efficient frontier is...

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Vanishing Hand

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labor, or seek vertical disintegration, rather than integrate. As minimum efficient scale falls firms size should fall as well. When firm size is viewed...

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Algorithmic efficiency

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small list. Typically, programmers are interested in algorithms that scale efficiently to large input sizes, and merge sort is preferred over bubble sort...

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Markowitz model

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of efficient portfolios. Selection of the best portfolio out of the efficient set. A portfolio that gives maximum return for a given risk, or minimum risk...

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Mathematical optimization

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function is a convex function, then any local minimum will also be a global minimum. There exist efficient numerical techniques for minimizing convex functions...

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Steiner tree problem

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the rectilinear Steiner tree problem, can be solved efficiently in practice, even for large-scale real-world problems. The original problem was stated...

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Hamming weight

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a value is expected to have few nonzero bits, it may instead be more efficient to use algorithms that count these bits one at a time. As Wegner described...

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Seasonal energy efficiency ratio

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are converted to the Kelvin or Rankine scales) a COP of 36, or an EER of 120. This is about 10 times more efficient than a typical home air conditioner available...

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Autoscaling

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Autoscaling, also spelled auto scaling or auto-scaling, and sometimes also called automatic scaling, is a method used in cloud computing that dynamically...

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Electrolysis of water

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oxygen flame can reach approximately 2,800°C. Water electrolysis requires a minimum potential difference of 1.23 volts, although at that voltage external heat...

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