Option 1 -> LRMC intersects LRAC at LRAC's minimum, not LRMC's minimum.
Option 2 -> LRMC cuts LRAC from below at the minimum point of LRAC - this is the optimal production scale.
Option 3 -> LRAC does not have a maximum point in standard cost theory.
Option 4 -> The intersection occurs at LRAC's minimum, not LRMC's maximum.
Hence, Option 2: LRAC is at minimum -> The LRMC curve always intersects the LRAC curve at the minimum point of LRAC. Before this point, LRMC lies below LRAC (pulling the average down), and after this point, LRMC lies above LRAC (pulling the average up). This is why we say LRMC "cuts from below" at the minimum of LRAC. This intersection point represents the most efficient scale of production in the long run. -> correct