Exhibit 12-6 
Refer to Exhibit 12-6.If P represents the market price for a price-taking firm,the best course of action in the short run for the firm is to:
A) shut down immediately.
B) continue operating because average total cost exceeds price.
C) continue operating because price exceeds average total cost.
D) continue operating because price exceeds average variable cost.
Correct Answer:
Verified
Q95: In long-run equilibrium under perfect competition:
A) price
Q96: Exhibit 12-6 Q97: Firms will continue to enter a competitive Q98: Exhibit 12-6 Q99: Darlene runs a fruit and vegetable stand Q101: Exhibit 12-8 The long-run total cost schedule Q102: Exhibit 12-7 The figure shows the price,marginal Q103: The fast-food industry is generally considered to Q104: Exhibit 12-8 The long-run total cost schedule Q105: Exhibit 12-7 The figure shows the price,marginal
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