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    Economics Today Study Set 1
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    Exam 23: Perfect Competition
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    The Shutdown Rule for a Firm in a Perfectly Competitive
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The Shutdown Rule for a Firm in a Perfectly Competitive

Question 29

Question 29

Multiple Choice

The shutdown rule for a firm in a perfectly competitive industry is that the firm should cease production if


A) P < MC.
B) P < ATC.
C) P < AVC.
D) P < AFC.

Correct Answer:

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