A Firm in a Competitive Market Has the Following Cost

question 493

Multiple Choice

A firm in a competitive market has the following cost structure: If the market price is $16,this firm will

• A) produce 4 units of output in the short run and exit in the long run.
• B) produce 5 units of output in the short run and exit in the long run.
• C) produce 5 units of output in the short run and face competition from new market entrants in the long run.
• D) shut down in the short run and exit in the long run.

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Definitions:

Celebrated

Widely recognized and praised for a particular achievement, skill, or quality.

Human Capital

The skills, knowledge, and experiences possessed by an individual that can be used to produce economic value.

Skills

The abilities and expertise that individuals acquire through learning and experience, which enable them to perform tasks effectively.

Abilities

The natural or acquired skills and talents that individuals possess.