Suppose that in the short run a firm's price just equals its average variable cost at its profit-maximizing or loss-minimizing level of output. This firm would:
A) break even if it continued to produce.
B) lose less by producing than by shutting down.
C) lose less by shutting down than by producing.
D) be no worse off if it produced than it would be if it shut down.

Question

Quizplus · Accepted Answer

The Answer of Suppose that in the short run a firm's price just equals its average variable cost at its profit-maximizing or loss-minimizing level of output. This firm would:
A) break even if it continued to produce.
B) lose less by producing than by shutting down.
C) lose less by shutting down than by producing.
D) be no worse off if it produced than it would be if it shut down.

Suppose That in the Short Run a Firm's Price Just