For a Particular Competitive Firm, the Minimum Value of Average

Multiple Choice

For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct?

A) In the short run, the firm will shut down if the price of its product is $14.
B) In the long run, the firm will shut down if the price of its product is $11.
C) For this firm, the minimum value of variable cost (VC) is $2,400.
D) If the firm's fixed cost (FC) amounts to $500, then the firm cannot earn a positive profit unless the price of its product exceeds $16.