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. E) Shut down in the short run and enter in the long run.

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. E) Shut down in the short run and enter in the long run.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 7MC

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