Table 14-5 A Firm in a Competitive Market Has the Following Cost

Multiple Choice

Table 14-5
A firm in a competitive market has the following cost structure:

-Refer to Table 14-5.If the market price is $4,what will this firm do

A) It will shut down in the short run and exit in the long run.
B) It will produce 2 units in the short run and exit in the long run.
C) It will produce 3 units in the short run and exit in the long run.
D) It will produce 4 units in the short run and exit in the long run.