4) In Figure 14.1, when market price is P1, and a profit-maximizing firm predict this is only a short-term situation, price will rise up to P2 soon. What will the firm do rationally?
A.
Sell all its assets and exit the market
B.
Shut-down its business.
C.
Continue operating, and produce at the quantity of Q2, making a loss.
D.
Don’t know what to do is the best.
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