The diagram shows the short-run cost curves and the long-run average cost curve for a firm. [Figure: Diagram showing cost on y-axis, output on x-axis, with curves MC₁, MC₂, AC₁, AC₂, LRAC and points F, E, G, H and quantities Q₁, Q₂, Q₃.] What can be concluded from the diagram? A At output Q1, point E represents a productively efficient position. B At output Q1, point F is preferred to point E because curve AC2 represents economies of scale. C Point G at output Q2 is productively efficient in the long run. D The biggest profits are made at point H at output Q3, which is the lowest marginal cost position.

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