Consider the Following Cost Curves for Firm X,a Perfectly Competitive

Multiple Choice

Consider the following cost curves for Firm X,a perfectly competitive firm. FIGURE 9-5
-Refer to Figure 9-5.If Firm X is producing output Q₁ and the market price is P₁,

A) there are profits to induce increases in output by Firm X,using its existing plant.
B) there is no lower-cost scale of plant which could be built by Firm X.
C) Firm X is producing at its minimum efficient scale.
D) Firm X is at its long-run profit-maximizing position.
E) new firms have a profit incentive to enter the industry,building larger plants.