If in the short run the firm incurs zero marginal cost, then the firm will
A) never shut down.
B) shut down if the price is greater than the average variable cost.
C) shut down if the price is less than the average total cost.
D) shut down if the marginal cost equals the marginal revenue.
Correct Answer:
Verified
Q84: What is marginal revenue?
Q85: Recall the Application about the break-even price
Q86: Recall the Application about the break-even price
Q87: In the short run, a firm that
Q88: If marginal revenue is $10 and marginal
Q90: If marginal revenue is $8 and marginal
Q91: A firm will not shut down in
Q92: If average total cost > average variable
Q93: Recall the Application about the break-even price
Q94: For a perfectly competitive firm, price always
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents