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

question 65

Multiple Choice

Consider the following cost curves for Firm X,a perfectly competitive firm. FIGURE 9-5
-Refer to Figure 9-5.If Firm X is producing output Q₁ and the market price is P₁,

• A)there are profits to induce increases in output by Firm X,using its existing plant.
• B)there is no lower-cost scale of plant which could be built by Firm X.
• C)Firm X is producing at its minimum efficient scale.
• D)Firm X is at its long-run profit-maximizing position.
• E)new firms have a profit incentive to enter the industry,building larger plants.

---

Definitions:

Hazardous Waste

Waste that poses substantial or potential threats to public health or the environment due to its toxicity, chemical reactivity, flammability, or other characteristics.

Residential Wells

Small-scale water extraction facilities located on private property used primarily to supply water to individual homes or small communities.

Aquatic Ecosystem

A water-based environment, including oceans, rivers, lakes, and wetlands, where plants and animals interact with the physical and chemical features.

Sewage, Sludge

The semi-solid by-product of the sewage treatment process, often treated and disposed of or sometimes used as a fertilizer after undergoing further processing.