Refer to the graph above to answer this question. All of the following statements except one are correct if a small market limits a firm's output to Q₁. Which is the exception?

Select one:

A.The firm is experiencing excess capacity.

B.The firm would benefit from a larger market.

C.Building a larger plant would lower the firm's average cost of producing Q₁.

D.The firm is not achieving minimum efficient scale.

E.The firm is not achieving capacity output in plant 1.