If AVC is $10 when P = MC, a firm
A) will have positive economic profits if price is greater than $10.
B) is producing too little output.
C) should shut down if price is less than $10.
D) is experiencing economies of scale.
Correct Answer:
Verified
Q222: A firm will shut down in the
Q223: The short-run shutdown price occurs where price
Q224: A firm that shuts down in the
Q225: Q226: A perfectly competitive firm's short-run break-even output Q228: As long as price exceeds AVC, the Q229: The shutdown rule for a firm in Q230: Economic profits at the short-run break-even point Q231: Accounting profits at a firm's break-even point Q232: For a perfectly competitive firm, any price
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