Econ

A) Yes, if the product price rises enough to lead the firm to expand to plant size 3. (B) No, because producing at point F implies a higher cost per unit of output. OC) Yes, because the firm can take advantage of economies of scale. OD) Yes, because SRATC is the optimal plant size for this firm. (E) No, because they are already producing at their lowest possible cost at point E.Question 6 (1 point) The figure below shows a family of cost curves for a firm. The subscripts 1, 2, and 3 for the SRATC curves refer to different plant sizes. LRAC SRATCS SRATC 2 SRATCJ Cost E Q1 Q2 Q3 Q4 QS Output FIGURE 8-3 19) Refer to Figure 8-3. Should this profit-maximizing firm ever consider moving from point E (output level Q3 on SRATC2) to point F (output level Q5 on SRATC3)