A firm sells 1000 units per week.It charges $70 per unit,the average variable costs are $25,and the average costs are $65.At what price would the firm consider shutting down in the long run?
A)$10
B)$25
C)$65
D)$70

Question

​A firm sells 1000 units per week.It charges $70 per unit,the average variable costs are $25,and the average costs are $65.At what price would the firm consider shutting down in the long run?
A)​$10
B)$25
C)$65
D)​$70

Quizplus · Accepted Answer

In the long run, a firm will consider shutting down if the price falls below the average total cost, which is $65 in this case.

​A Firm Sells 1000 Units Per Week

A Firm Sells 1000 Units Per Week