Economics 9708 · AS & A Level · 7.5

7.5 — practice question

In the diagram, a firm is producing at point X on its long-run average cost curve. Which statement is not correct?

  • AThe firm is employing the least-cost combination of factor inputs to produce OQ.
  • BThe firm is operating below its minimum efficient scale.
  • CThe firm is producing at its cost-minimising level of output.
  • DThe firm is producing output OQ at minimum cost.

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