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The most efficient scale of production of a firm is where
LAC is minimum
SAC is minimum
LMC is minimum
SMC is minimum
The most efficient scale of production of a firm is where LAC is minimum. LAC at the efficient scale of production is thus the minimum average cost. Long Run Average Cost (LAC) Curve. Long run is that time period when a firm can change all its inputs.Thus, in the long run, there is no fixed cost; all costs are variable.
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