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 Q$1.$ Which is the exception?

Question $10$ options:

A$)$

The firm is experiencing excess capacity.

B$)$

Building a larger plant would lower the firm's average cost of producing Q$1.$

C$)$

The firm would benefit from a larger market.

D$)$

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

E$)$

The firm is not achieving minimum efficient scale.