If a perfectly competitive firm is producing where its MR=MC, but is operating to the left of the minimum point of its LRAC curve,

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it can reduce its average costs by building a larger plant.

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its profits will decrease if it builds a larger plant.

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it is in a long-run profit maximizing position.

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it cannot be optimizing its short-run behaviour.

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it can still be in long-run equilibrium as long as P = ATC.

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