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Assume the Following Total Cost Schedule for a Perfectly Competitive

Question 53

Multiple Choice

Assume the following total cost schedule for a perfectly competitive firm.  Output  TVC  TFC 001001401002701003120100418010052501006330100 TABLE 9- 2\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { Output } & \text { TVC } & \text { TFC } \\\hline 0 & 0 & 100 \\\hline 1 & 40 & 100 \\\hline 2 & 70 & 100 \\\hline 3 & 120 & 100 \\\hline 4 & 180 & 100 \\\hline 5 & 250 & 100 \\\hline 6 & 330 & 100 \\\hline\end{array}\\\text { TABLE 9- } 2\end{array}
-Refer to Table 9- 2. The profit- maximizing firm would shut down in the short run if the market price of its output dropped below


A) $35.
B) $40.
C) $70.
D) $90.
E) $100.

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