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If Price Falls Below Minimum Average Variable Cost,the Best a Firm

Question 15

Multiple Choice

If price falls below minimum average variable cost,the best a firm can do is


A) increase production and incur a loss equal to total variable cost.
B) increase production and incur a loss equal to total fixed cost.
C) stop production and incur a loss equal to total fixed cost.
D) stop production and incur a loss equal to total variable cost.
E) stay at the same production level and incur a loss equal to the difference between total cost and total revenue.

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