Exhibit 10-13 
-All of the following statements regarding Exhibit 10-13 are true except one . Which is the exception?
A) The firm represented in the exhibit will likely be a perfect competitor.
B) There are economies of scale in this industry.
C) The minimum efficient quantity is 1,000 units.
D) At 500 units there is excess capacity.
E) A firm too small to produce at least 1,000 units will have difficulty surviving in this industry.
Correct Answer:
Verified
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