If a competitive firm is producing to the left of the minimum point of its long- run average cost curve, then
A) it can reduce its unit costs by building a larger plant.
B) its profits will decrease if it builds a larger plant.
C) it should shut down.
D) it cannot be producing its present output efficiently.
E) it can still be in long- run equilibrium as long as P = SRATC.
Correct Answer:
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