Multiple Choice
Suppose you find that the price of your product is less than minimum AVC. You should
A) minimize your losses by producing where P = MC.
B) maximize your profits by producing where P = MC.
C) close down because, by producing, your losses will exceed your total fixed costs.
D) close down because total revenue exceeds total variable cost.
Correct Answer:
Verified
Correct Answer:
Verified
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