This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
According the graph shown,the firm's most efficient scale of operation is to produce quantity:

Question

This graph represents the cost and revenue curves of a firm in a perfectly competitive market. 
According the graph shown,the firm's most efficient scale of operation is to produce quantity:

Quizplus · Accepted Answer

The most efficient scale of operation for a firm in a perfectly competitive market is where marginal cost equals marginal revenue, which is where the firm produces Q2. At this quantity, the firm is maximizing its profits as it is producing at the lowest possible cost and selling at the highest possible price. Producing at any other quantity would result in lower profits.

This Graph Represents the Cost and Revenue Curves of a Firm