Figure 6.3 -Figure 6.3 Shows the Cost Structure of a Firm in Firm

question 71

Multiple Choice

Figure 6.3
-Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. If the market price is $6, then the firm will

• A) be better off producing 150 units than shutting down.
• B) be better off exiting the market and using the resources for other production activities.
• C) be better off shutting down in the short run and waiting until the market price rises above $10.
• D) none of the above.