Figure 14-6 Suppose a Firm Operating in a Competitive Market Has the Has

Multiple Choice

Figure 14-6
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-6. Firms will shut down in the short run if the market price

A) exceeds P3.
B) is less than P1.
C) is greater than P1 but less than P3.
D) exceeds P2.