Answer :
When the unit cost is as low as it can be while the business is producing its goods efficiently, this is known as the minimum efficient scale (MES).
What is unit of production:
The unit of production approach is a way to figure out how much an asset's value depreciates over time. When an asset's worth is more closely correlated with the quantity of units it creates than the duration of time it has been in use, it becomes useful.
In other terms, a unit of production degradation is directly proportionate to production. Unit of production depreciation, also known as the activity approach, calculates characteristic properties on the unit of production and disregards the passage of time throughout an asset's useful life.
Economic theory heavily emphasizes the role of production. Due to the application of work to land, it generates value for the economy. Through the accessibility of things, production also raises people's standards of living and quality of life.
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