The diagram presents a firm's short-run cost curves together with its long-run average cost curve. What conclusion can be drawn from the diagram?
- AAt output Q1, point E represents a productively efficient position.
- BAt output Q1, point F is preferred to point E because curve AC2 represents economies of scale.
- CPoint G at output Q2 is productively efficient in the long run.
- DThe biggest profits are made at point H at output Q3, which is the lowest marginal cost position.