Economics Questions Glendale Community College Econ 101 Winter 2022 Test 3 Question 3

At a market price of $4, the perfectly competitive firm depicted in the graph should:

a. continue to produce in the short run but shut down in the long run

b. shut down in the short run but continue production in the long run

c. shut down immediately

d. continue to produce in both the short run and the long run