"." is an operation between two strings.
x.y produces a new string by simply joining the end of x to the front of y (concatenation).
L1 = {^, a, b}
L2 = {^, b, a}
L3 = {a, b}
Note that, ^ (i.e. lambda) means an empty string.
When we write elements of a set, the order doesn't matter. That is, {a,b} = {b,a}.
A is {000,111}
B is {^, 000,111}
C is {000,001,010,011,100,101,110,111}
D is {^,0,1,00,01,10,11,000,001,010,011,100,101,110,111}