Solved

A Firm in a Competitive Market Has the Following Cost

Question 454

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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: A competitive market is in long-run equilibrium.

Q24: When it produces and sells 80 units

Q449: Table 14-6<br>The following table presents cost and

Q451: When price is below average variable cost,

Q452: Figure 14-3<br>Suppose a firm operating in a

Q453: For a firm operating in a competitive

Q456: Table 14-10<br>Suppose that a firm in a

Q457: Figure 14-1<br>Suppose that a firm in a

Q458: In a competitive market, no single producer

Q459: Suppose the long-run supply curve for a