If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output,which of the following is true? A firm will:
A) lose money and shut down in the short run if price falls below $15.
B) lose money, but continue to operate in the short run if price is at least $15.
C) make positive profits any time the price is greater than $15.
D) All of these are true.
Correct Answer:
Verified
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