Table 14-4 A Firm in a Competitive Market Has the Following Cost

Multiple Choice

Table 14-4
A firm in a competitive market has the following cost structure:

-Refer to Table 14-4.When will this firm shut down and exit

A) It will shut down if price falls below $3.33 and exit if it falls below $5.
B) It will shut down if price falls below $5 and exit if it falls below $3.33.
C) It will shut down and exit if price falls below $5.
D) It will shut down if price falls below $7 and exit if it falls below $10.