Many furniture stores run "going out of business" sales but never go out of business. For the shut-down decision to be the appropriate one, the price of furniture must be _____ than the _____ average variable cost.

Question

Quizplus · Accepted Answer

For a business to shut down, the price must be lower than the minimum average variable cost, meaning the business cannot cover its variable costs and should cease operations.

Many Furniture Stores Run "Going Out of Business" Sales but Never