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Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817 Exercise 3
When a firm chooses to shut down, it is
A) making a poor decision because it should always produce where marginal cost equals marginal revenue.
B) making a poor decision because it should always produce where average costs exceed average revenue.
C) making a good decision as long as the price it is getting is less than its average costs.
D) making a good decision as long as the price it is getting is less than its average variable costs.
A) making a poor decision because it should always produce where marginal cost equals marginal revenue.
B) making a poor decision because it should always produce where average costs exceed average revenue.
C) making a good decision as long as the price it is getting is less than its average costs.
D) making a good decision as long as the price it is getting is less than its average variable costs.
Explanation
Verified
Verified
Hence, option (a)is incorrect.
The shut...
Issues in Economics Today 7th Edition by Robert Guell
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