Multiple Choice
If a competitive firm finds that it maximizes short-run profits by shutting down,which of the following must be TRUE?
A) p < AVC for all levels of output.
B) p < AVC only for the level of output at which p = MC.
C) p < AVC only if the firm has no fixed costs.
D) The firm will earn zero profit.
Correct Answer:
Verified
Correct Answer:
Verified
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