You are hired by Jimbo's Potato Farm to determine when Jimbo should shut down and produce no potatoes in the short run. Jimbo sells his potatoes in a perfectly competitive market. You tell Jimbo to shut down if
A) total cost is less than total revenue when marginal revenue equals marginal cost.
B) price is less than average variable cost when marginal revenue equals marginal cost.
C) price is less than average total cost when marginal revenue equals marginal cost.
D) marginal revenue is less than marginal cost.
Correct Answer:
Verified
Q104: Q105: If your firm is producing a good Q106: If a firm has already paid or Q107: A perfectly competitive firm is producing a Q108: Recall the Application about the shutdown price Q110: In the short run, the firm should 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![]()