Refer to the graph shown. Suppose the market price is $3. At this price, a perfectly competitive firm should:
A) continue to produce in the short run but shut down in the long run.
B) continue to produce in both the short run and the long run.
C) shut down in the short run but continue production in the long run.
D) shut down immediately.

Question

Refer to the graph shown. Suppose the market price is $3. At this price, a perfectly competitive firm should: 
A) continue to produce in the short run but shut down in the long run. 
B) continue to produce in both the short run and the long run. 
C) shut down in the short run but continue production in the long run. 
D) shut down immediately.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Suppose the market price is $3. At this price, a perfectly competitive firm should: 
A) continue to produce in the short run but shut down in the long run. 
B) continue to produce in both the short run and the long run. 
C) shut down in the short run but continue production in the long run. 
D) shut down immediately.

Refer to the Graph Shown