For a perfectly competitive firm, MR = MC at 250 units of output. At 250 units, ATC is greater than AVC. It necessarily follows that
A) the firm should shut down its operation.
B) the marginal cost curve must have an upward-sloping portion and a downward-sloping portion.
C) the firm should continue to produce.
D) b and c
E) none of the above
Correct Answer:
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