Multiple Choice
Use the following scenario to answer the following questions:
Lenora and Uma own a dog-grooming business in upstate New York,called Pawkeepsie Groomers.There are many buyers and many sellers in the dog-grooming service market.Pawkeepsie Groomers experiences normal cost curves,with the marginal cost (MC) curve crossing average variable cost (AVC) at $14 and average total cost (ATC) at $22.
-Pawkeepsie Groomers will always shut down if the market price is
A) $14.
B) between $14 and $22.
C) below $14.
D) $22.
E) above $14.
Correct Answer:
Verified
Correct Answer:
Verified
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