SRATC3 LRAC SRATC, SRATC, D E F Cost A: B C Output Q1 Q Q3 Q4 Q5 A) When referencing factors of production, what is meant by the short run, the long run, and the very long run? (3 marks) B) Why is it not possible for any point of a firm's SRATC to be below their LRAC? (1 mark) C) At what point on the above diagram has the firm reached minimum efficiency scale? (1 mark) D) For the LRAC, what is happening to both a firm's costs and returns to the right of the minimum efficiency scale point? (2 marks)