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A Firm in a Competitive Market Has the Following Cost

Question 254

Multiple Choice

A firm in a competitive market has the following cost structure: 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. 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.

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