-The above figure shows the cost curves for a competitive firm. The firm will shut down in the short run if price falls below
A)$5.
B)$10.
C)$11.
D)$15.

Question

-The above figure shows the cost curves for a competitive firm. The firm will shut down in the short run if price falls below
A)$5. 
B)$10. 
C)$11. 
D)$15.

Quizplus · Accepted Answer

In the short run, a firm will shut down if the price falls below its average variable cost (AVC) at its lowest point. From the given options, $5 is the lowest price that corresponds to the minimum point of the AVC curve, indicating the shutdown point.

-The Above Figure Shows the Cost Curves for a Competitive