Scenario: the Fixed Cost of Producing 500 Units of Good

Multiple Choice

Scenario: The fixed cost of producing 500 units of Good Y is $25,000, while the variable cost of producing 500 units of Good Y is $60,000.
-Refer to the scenario above.If the market for Good Y is monopolistically competitive,a firm producing Good Y will shut down production in the short run if price falls below ________.

A) $60
B) $200
C) $120
D) $50