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FIGURE 8-6 -Refer to Figure 8-6. If P Represents the Market Price

Question 65

Multiple Choice

FIGURE 8-6
FIGURE 8-6 -Refer to Figure 8-6. If P represents the market price for a price-taking firm, what is the best course of action in the short run for the firm? A) Shut down immediately. B) Continue operating because average total cost exceeds price. C) Continue operating because average variable cost exceeds price. D) Continue operating because price exceeds average variable cost.
-Refer to Figure 8-6. If P represents the market price for a price-taking firm, what is the best course of action in the short run for the firm?


A) Shut down immediately.
B) Continue operating because average total cost exceeds price.
C) Continue operating because average variable cost exceeds price.
D) Continue operating because price exceeds average variable cost.

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