If the demand curve falls below the ATC curve but lies above AVC, then the firm should
A) Should shut down
B) Operate in the short run but not the long run
C) Set price = marginal cost
D) Operate in the short run and the long run
Correct Answer:
Verified
Q13: At the output where MC = ATC
Q14: When the perfectly competitive firm maximizes profits
Q15: Joe should
A)Quit his job
B)Keep the job
C)Work part-time
D)It
Q16: In the graph above if the price
Q17: Which statement is true of the graph
Q19: The demand curve facing a perfectly competitive
Q20: In general, economists assume that firms
A)Maximize accounting
Q21: In the long run, the long price
Q22: In the long run, the typical firm
Q23: When the price is P1, in order
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