Refer to Figure 23.4 for a perfectly competitive market and firm. Which of the following is most likely to occur, ceteris paribus?
A) The firm will exit in the long run.
B) The firm will increase output.
C) The firm will shut down in the short run.
D) The firm will raise its price.

Question

Refer to Figure 23.4 for a perfectly competitive market and firm. Which of the following is most likely to occur, ceteris paribus?
A) The firm will exit in the long run. 
B) The firm will increase output. 
C) The firm will shut down in the short run. 
D) The firm will raise its price.

Quizplus · Accepted Answer

The Answer of  Refer to Figure 23.4 for a perfectly competitive market and firm. Which of the following is most likely to occur, ceteris paribus?
A) The firm will exit in the long run. 
B) The firm will increase output. 
C) The firm will shut down in the short run. 
D) The firm will raise its price.