A firm in a competitive market has the following cost structure: 
If the market price is $4, this firm will
A) produce 2 units in the short run and exit in the long run.
B) produce 3 units in the short run and exit in the long run.
C) produce 4 units in the short run and exit in the long run.
D) shut down in the short run and exit in the long run.
Correct Answer:
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