If a firm's demand curve falls below its AVC curve, then the firm should
A) Shut down now
B) Operate in the short run but not the long run
C) Set price = marginal cost
D) Shutdown in the long-run
Correct Answer:
Verified
Q2: Say a competitive firm is producing at
Q3: If firms are price takers this implies
A)That
Q4: Suppose that Joe had a long term
Q5: Suppose that the store owner gave Joe
Q8: In a decreasing cost industry, as output
Q9: The output where MC = AVC is
Q9: The profit maximizing output level for a
Q10: In the graph above at P*, the
Q11: In the graph above at a price
Q17: Which of the following is not a
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