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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

A Firm in a Competitive Market Has the Following Cost