In Figure 23

question 1

Multiple Choice

In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market.Use both diagrams to answer the following question: In Figure 23.3, if market demand is at D1, the firm should

• A)Leave the market.
• B)Produce q1.
• C)Shut down.
• D)Do any of the above depending on the position of the AVC and the length of the time period.