If the price is less than the average variable cost then
A) The loss the firm makes from shutting down (its TFC) is less than the loss they make as a result of producing.
B) The loss the firm makes from shutting down (its TFC) is greater than the loss they make as a result of producing.
C) The firm should produce where MC=MR.
D) The firm should produce where AVC is minimized.
Correct Answer:
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