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.In this industry,which one of the following is FALSE?

A) If the price were to fall below P₂,firms would leave the industry.
B) If the price were to rise above P₂,new firms would enter the industry.
C) If the scale of Firm X at output Q₂ and price P₂ is large enough that Firm X has an appreciable share of the market,Firm X will no longer be a price taker.
D) At output Q₂ and price P₂,Firm X is maximizing its long-run profits.
E) Only one firm can reach the size of output Q₂.