Table 14-7
a Firm in a Competitive Market Has the Following

question 165

Multiple Choice

Table 14-7
A firm in a competitive market has the following cost structure:
​
​
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & 5 \\\hline 1 & 10 \\\hline 2 & 12 \\\hline 3 & 15 \\\hline 4 & 24 \\\hline 5 & 40 \\\hline\end{array}$$
-Refer to Table 14-7. 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.

---

Definitions:

Objective Tests

Assessments that have fixed answers and are scored without bias, often in the form of multiple-choice, true/false, or fill-in-the-blank questions.

Stanford-Binet Test

A standardized intelligence test used to measure cognitive abilities and intellectual potential in individuals.

Normal Range

The set of values within which a normal function or phenomenon occurs; often used in a medical context.

Gifted

Possession of above-average intelligence (an IQ of 130 or higher) and/or superior talent for something.