Multiple Choice
Which of the following is true if a firm shuts down?
i.The price is less than minimum average variable cost.
ii.The firm is able to avoid an economic loss.
iii.The firm incurs a loss equal to its total variable cost.
A) i only
B) i and ii
C) i and iii
D) iii only
E) ii only
Correct Answer:
Verified
Correct Answer:
Verified
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