Refer to Table 14-7. 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.

Competitive Market

A commercial system where numerous buyers and sellers exist, preventing any single party from setting the price.

Cost Structure

The composition of fixed and variable costs that a business or project incurs during its operations, highlighting how different expenses affect the total cost and profitability.

Total Cost

The total of all costs associated with producing goods or services, which encompasses both fixed and variable expenses.