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.
Correct Answer:
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