What is the exit point for a firm in the long run, and why is it significant?

• A. The exit point is where price equals average fixed cost, and it is significant because the firm covers all fixed costs.
• B. The exit point is where price equals average total cost, and it is significant because below this point, the firm will exit the market.
• C. The exit point is where price equals marginal cost, and it is significant because the firm maximizes profit.
• D. The exit point is where price equals average variable cost, and it is significant because the firm will cease production.

Answer: (B)