Use the following to answer questions:
-(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm. The firm will stop production and shut down if the price is:

Question

Use the following to answer questions: 
-(Table: Total Cost for a Perfectly Competitive Firm) Look at the table Total Cost for a Perfectly Competitive Firm. The firm will stop production and shut down if the price is:

Quizplus · Accepted Answer

The firm will shut down if the price is below the average variable cost. At a price of $2.50, it is likely below the average variable cost, leading to a shutdown decision.

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