At output Q₂2 and price P2, which of the following is TRUE? OA. The firm suffers some diseconomies of scale. OB. P=MC=SRATC=LRAC. OC. P=MC=LRAC #SRATC. D. There are economic profits to attract new entrants. OE. The firm has economies of scale.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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At output Q and price P2, which of the following is TRUE?
OA. The firm suffers some diseconomies of scale.
OB. P=MC=SRATC=LRAC.
OC. P=MC=LRAC #SRATC.
OD. There are economic profits to attract new entrants.
O E. The firm has economies of scale.
Transcribed Image Text:At output Q and price P2, which of the following is TRUE? OA. The firm suffers some diseconomies of scale. OB. P=MC=SRATC=LRAC. OC. P=MC=LRAC #SRATC. OD. There are economic profits to attract new entrants. O E. The firm has economies of scale.
P₁
$ per unit
P2
MC₁
Q₁
SRATC₁
MC₂ SRATC2
Q₂
LRAC
Quantity
Transcribed Image Text:P₁ $ per unit P2 MC₁ Q₁ SRATC₁ MC₂ SRATC2 Q₂ LRAC Quantity
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