Refer to the Graph Shown

question 125

Multiple Choice

Refer to the graph shown. Suppose that the market price is $5. At this price, a perfectly competitive firm should:

• A)continue to produce in the short run but shut down in the long run.
• B)continue to produce in both the short run and the long run.
• C)shut down in the short run but continue production in the long run.
• D)shut down immediately.