Economics Multiple Choice Question – 6 December 2018

John’s Pizza is a perfectly competitive firm. The firm’s costs are shown in the table below.

If the market price is $15, the firm will ……. ?

Select ONE answer:

1. stay in the industry in the long run.
2. shut down.
3. make an economic profit.
4. leave the industry in the long run.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

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