If the price is less than the average variable cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:
A.produce at a loss.
B.produce at a profit.
C.shut down production.
D.produce more than the profit-maximizing quantity.

Question

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The Answer of If the price is less than the average variable cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:
A.produce at a loss.
B.produce at a profit.
C.shut down production.
D.produce more than the profit-maximizing quantity.

If the Price Is Less Than the Average Variable Cost