Refer to the accompanying table. A firm participating in a competitive market with these costs would always shut down if the price is: $\begin{array}{lll}\text { Price }&\text { Average Fixed Cost }&\text { Average Vaxiable Cost }\
\$ 2 & \$ 5 & \$ 6 \
\$ 4 & \$ 3 & \$ 4 \
\$ 6 & \$ 1 & \$ 5 \
\$ 8 & \$0.50 & \$ 7
\end{array}$

Question

Quizplus · Accepted Answer

The firm would shut down if the price is less than the average variable cost. At a price of $2, the average variable cost is $6, so the firm would shut down.

Refer to the Accompanying Table A) $6 B) $8

Refer to the Accompanying Table A) $6
B) $8