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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Consider the Following Cost Curves for Firm X, a Perfectly