Multiple Choice
When price is below average variable cost in the short run,what will a firm in a competitive market do
A) It will shut down and incur fixed costs.
B) It will shut down and incur both variable and fixed costs.
C) It will continue to operate as long as average revenue exceeds marginal cost.
D) It will continue to operate as long as average revenue exceeds average fixed cost.
Correct Answer:
Verified
Correct Answer:
Verified
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