Exhibit 9-5
-The firm in Exhibit 9-5
A) is operating in the short run
B) is operating in the long run
C) will exit the industry in the long run
D) shut down in the short run
E) could be operating in either the short run or the long run

Question

Exhibit 9-5 
-The firm in Exhibit 9-5
A) is operating in the short run 
B) is operating in the long run 
C) will exit the industry in the long run 
D) shut down in the short run 
E) could be operating in either the short run or the long run

Quizplus · Accepted Answer

The firm is operating in the short run because it is making a loss but has not yet exited the industry.

Exhibit 9-5 -The Firm in Exhibit 9-5