Final answer:
Consumer preferences can support many small-scale producers when the minimum efficient scale is attained at a low level of output, facilitating a marketplace with a diverse range of products.
Step-by-step explanation:
When minimum efficient scale occurs at a low level of output, consumer preferences may support a large number of relatively small-scale producers.
Economies of scale refer to the reduction in the cost per unit as the quantity of output increases, which is why large warehouse stores like Costco or Walmart can offer lower prices. However, when the minimum efficient scale is achievable at low levels of output, a market can sustain a larger number of small producers, as they can still operate at efficient levels of production without needing to scale up significantly. This can lead to a diverse marketplace with a variety of goods available to consumers.