Consider the Following Cost Curves for Firm X,a Perfectly Competitive

question 80

Multiple Choice

Consider the following cost curves for Firm X,a perfectly competitive firm.
FIGURE 9-5
-Refer to Figure 9-5.At output Q2 and price P2,which of the following is FALSE?

• A)There are economic profits to attract new entrants.
• B)The firm producing Q2 is at its long-run profit-maximizing position.
• C)P = MC = SRATC = LRAC.
• D)There are no unexploited internal economies of scale.
• E)Firm X is producing at its minimum efficient scale.

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