Exhibit 8-19 A Single Firm in a Perfectly Competitive Market 
Consider Exhibit 8-19.When the market price is P3, which of the following most acurately reflects the firms short-run situation?
A) The firm will choose to produce quantity Q3 and earn exactly 0 profit
B) The firm will choose to produce quantity Q3 and earn a profit
C) The firm will choose to produce quantity Q3 and suffer a loss
D) The firm will choose to produce quantity Q5 and earn a profit > 0
E) The firm will choose to produce quantity Q5 and earn exactly 0 profit
Correct Answer:
Verified
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