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:
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$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & 5 \\\hline 1 & 10 \\\hline 2 & 12 \\\hline 3 & 15 \\\hline 4 & 24 \\\hline 5 & 40 \\\hline\end{array}$$
-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.

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Definitions:

Impulsive Actions

Behaviors that are performed quickly without careful thought or planning, often as a result of spontaneous desires or emotions.

Development of the Ego

The process through which an individual's sense of self or identity emerges and evolves, influenced by psychological, social, and biological factors.

Experience Shame

An intense emotional response felt when an individual perceives themselves as having failed to meet certain standards or expectations, which can be internal or societal.

Experience Guilt

The emotional state that arises from the realization or belief that one has caused harm or violated a moral standard.