Figure 7-D
-Refer to Figure 7-D.In the short run, if the market price falls below ____, the firm should shut down.

Name: Figure 7-D -Refer to Figure 7-D.In the short run, if the market price falls below ____, the firm should shut down.
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Question

Figure 7-D 
-Refer to Figure 7-D.In the short run, if the market price falls below ____, the firm should shut down.

Quizplus · Accepted Answer

In the short run, a firm should shut down if the market price falls below the average variable cost. Typically, this is represented by the lowest point on the average variable cost curve, which is often given as $30 in such scenarios.

Figure 7-D -Refer to Figure 7-D.In the Short Run, If the Market