Exhibit 16 Short-Run Cost Curves for a Competitive Firm

question 135

Multiple Choice

Exhibit 16 Short-run cost curves for a competitive firm

-In Exhibit 7-16,if the market price of its product is $50 per unit,then the firm will:

• A) break even.
• B) shut down.
• C) exit the industry.
• D) earn a positive economic profit.

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