Figure 14-5 Suppose a Firm Operating in a Competitive Market Has the Has

Multiple Choice

Figure 14-5
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-5. In the short run, if the market price is P4, individual firms in a competitive industry will earn

A) positive profits.
B) zero profits.
C) losses but will remain in business.
D) losses and will shut down.