A Firm in a Competitive Market Has the Following Cost

question 147

Multiple Choice

A firm in a competitive market has the following cost structure:

If the market price is $4,this firm will

• A) produce two units in the short run and exit in the long run.
• B) produce three units in the short run and exit in the long run.
• C) produce four units in the short run and exit in the long run.
• D) shut down in the short run and exit in the long run.

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Definitions:

Career Choice

The selection of a profession or occupation based on personal interests, values, and abilities, often considered a major life decision.

Day-To-Day Duties

The routine tasks or responsibilities that an individual performs on a daily basis.

Location

The specific place or position of something or someone.

Occupational Outlook Handbook

A publication by the United States Department of Labor that provides comprehensive information on the duties, education requirements, and salary of various occupations.