If a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between averagevariable cost and average total cost, it willa. keep producing in the short run but exit themarket in the long run.b. shut down in the short run but return toproduction in the long run.c. shut down in the short run and exit the market inthe long run.d. keep producing both in the short run and in thelong run.
If a profit-maximizing, competitive firm is producinga quantity at which marginal cost is between averagevariable cost and average total cost, it willa. keep producing in the short run but exit themarket in the long run.b. shut down in the short run but return toproduction in the long run.c. shut down in the short run and exit the market inthe long run.d. keep producing both in the short run and in thelong run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
If a profit-maximizing, competitive firm is producing
a quantity at which marginal cost is between average
variable
a. keep producing in the short run but exit the
market in the long run.
b. shut down in the short run but return to
production in the long run.
c. shut down in the short run and exit the market in
the long run.
d. keep producing both in the short run and in the
long run.
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