If a perfectly competitive firm finds that price is less than average variable cost, it should:
A) not adjust output if marginal cost equals price.
B) shut down immediately.
C) increase output until price equals marginal cost.
D) decrease output until price equals marginal cost.

Question

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The Answer of If a perfectly competitive firm finds that price is less than average variable cost, it should:
A) not adjust output if marginal cost equals price.
B) shut down immediately.
C) increase output until price equals marginal cost.
D) decrease output until price equals marginal cost.

If a Perfectly Competitive Firm Finds That Price Is Less