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

Question 15

Multiple Choice

Consider the following cost curves for Firm X,a perfectly competitive firm.
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) 	Firm X is at its long- run profit- maximizing position. B) new firms have a profit incentive to enter the industry,building larger plants. C) Firm X is producing at its minimum efficient scale. D) there is no lower- cost scale of plant which could be built by Firm X. E) there are profits to induce increases in output by Firm X,using its existing plant. FIGURE 9- 5
-Refer to Figure 9- 5.If Firm X is producing output Q1 and the market price is P1,


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

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