A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.At what price does the firm consider shutting-down in the long run?

Question

Quizplus · Accepted Answer

The firm will shut down in the long run if the price is below the average total cost. In this case, the average total cost is $55, so the firm will shut down if the price is below $55.

A Firm Sells 300,000 Units Per Week