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A firm in a competitive market has the cost structure shown in the table. If the market price is $10, this firm will a) produce 5 units of output in...

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A firm in a competitive market has the cost structure shown in the table. If the market price is $10, this firm will


a) produce 5 units of output in the short run and exit in the long run.


b) produce 5 units of output in the short run and face competition from new market entrants in the long run.


c) produce 4 units of output in the short run and exit in the long run.


d) shut down in the short run and exit in the long run.


e) produce 4 units of output in the short run and face competition from new market entrants in the long run.

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e) produce 4 units of output in the short... View the full answer

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