Consider the Following Cost Curves for Firm X, a Perfectly

question 16

Multiple Choice

Consider the following cost curves for Firm X, a perfectly competitive firm. FIGURE 9-3
-Refer to Figure 9-3.

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

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