Use the following to answer question:
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The minimum price that the firm must receive to produce in the short run is:

Question

Use the following to answer question: 
-(Figure: A Perfectly Competitive Firm in the Short Run)Use Figure: A Perfectly Competitive Firm in the Short Run.The minimum price that the firm must receive to produce in the short run is:

Quizplus · Accepted Answer

The minimum price that the firm must receive to produce in the short run is the shutdown point, which is where the ATC curve intersects the AVC curve at point P. At any point below P, the firm would not be able to cover its variable costs and would choose to shut down production. Therefore, D is the correct choice.

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