Economics 9708 · AS & A Level · 7.5

7.5 — practice question

In the diagram, the firm is producing at point X on its long-run average cost curve. Which statement about the firm is correct?

  • AIt is operating at its optimal level of output.
  • BIt is operating at its cost-minimising level of output.
  • CIt is operating its plant at full capacity.
  • DIt is producing its current output at minimum cost.

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