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Fact 11.2.1 GM to Cut Production and Jobs
General Motors will temporarily idle five U.S.assembly plants that build sedans and coupes,such as the Chevrolet Cruze,Cadillac CTS,and Chevy Camaro,as American motorists by the millions shift from passenger cars to utility vehicles and other light trucks.
Source: The Toronto Star,December 21,2016
-Refer to Fact 11.2.1.GM will start producing the Chevy Volt again when price is greater than

Question

Quizplus · Accepted Answer

The information provided does not give any indication of the cost structure of producing the Chevy Volt. Therefore, the only logical answer is A, which states that GM will start producing the Chevy Volt again when its price is greater than the average variable cost. This makes sense as any business would want to ensure that they are covering their variable costs before producing and selling a product.

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