Exhibit 10-13 All of the Following Statements Regarding Exhibit

Multiple Choice

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.