A firm in a competitive market has the following cost structure: Output Total Cost 0 $5 1 $10 2 $12 3 $15 4 $24 5 $40 If the market price is $4, this firm will Group of answer choices produce 2 units in the short run and exit in the long run. produce 3 units in the short run and exit in the long run. produce 4 units in the short run and exit in the long run. shut down in the short run and exit in the long run.

Q&A Education