-The Above Figure Shows a Perfectly Competitive Firm

Multiple Choice

-The above figure shows a perfectly competitive firm. If the market price is $5 per unit, the firm

A) will definitely shut down to minimise its losses.
B) will stay open to produce and will make zero economic profit.
C) will stay open to produce and will incur an economic loss.
D) will stay open to produce and will make an economic profit.
E) might shut down but more information is needed about the fixed cost.