When a firm chooses to shutdown, it is
A) making a poor decision because it should always produce where marginal cost equals marginal revenue.
B) making a poor decision because it should always produce where average costs exceed average revenue.
C) making a good decision as long as the price it is getting is less than its average total costs.
D) making a good decision as long as the price it is getting is less than its average variable costs.
Correct Answer:
Verified
Q126: If MR<MC the firm should produce
A)At this
Q127: The quantity where MC=MR is also the
Q128: If the price is greater than the
Q129: The quantity where TR-TC is the greatest
Q130: To maximize profit a firm will find
Q132: The quantity where TR-TC is the greatest
Q133: The result that a firm should produce
Q134: When the firm is a price maker,
Q135: When the firm is a price taker,
Q136: If MR=MC and P<AVC the firm should
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