Combine the concepts of shutdown and exit to explain a firm's strategic decision-making process.

• A. A firm will never exit the market if it shuts down temporarily.
• B. A firm may shut down temporarily in the short run but exit permanently in the long run if profitability is not achievable.
• C. A firm will always exit the market if it shuts down in the short run.
• D. A firm will only exit the market if it covers its fixed costs.

Answer: (B)