A Firm in a Competitive Market Has the Following Cost

question 566

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:

Repair Speed

The rate at which damaged or malfunctioning products or equipment are restored to working order.

Providing Redundancy

The act of incorporating extra components, systems, or processes to increase reliability and avoid failure in case of a component breakdown.

Backup

Backup refers to the process of copying and archiving computer data so it may be used to restore the original after a data loss event.

System Reliability

The probability that a system will perform its intended function adequately for a specified period under the given conditions.