Exhibit 8-19 a Single Firm in a Perfectly Competitive Market

Exhibit 8-19 A Single Firm in a Perfectly Competitive Market Consider Exhibit 8-19.When the market price is P₅, which of the following most acurately reflects the firms short-run situation?

A) the firm will choose to produce no output and shut-down
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