Multiple Choice
Suppose a price-taking firm produces 400 units at its optimal output level.At that output rate marginal cost is $200, average total cost is $240, and average variable cost is $170.What can you determine about the market price that would force the firm to shut down in the short run?
A) It equals $200.
B) It is between $170 and $240.
C) It is less than $170.
D) It is between $170 and $200.
E) It equals $240.
Correct Answer:
Verified
Correct Answer:
Verified
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