Exhibit 22-8 ​

question 151

Multiple Choice

Exhibit 22-8
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-Refer to Exhibit 22-8. Which of the following is true in the short run of firms A and B, two perfectly competitive firms?

• A)Both firm A and firm B will continue to produce in the short run.
• B)Firm A will continue to produce and firm B will shut down.
• C)Firm A will shut down and firm B will continue to produce.
• D)Firm A will continue to produce in the short run and shut down in the long run.
• E)a and d