Refer to the accompanying table. A firm participating in a competitive market with these costs would be indifferent about producing or shutting 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

A firm is indifferent about producing or shutting down when the price equals the average variable cost. Here, the price of $4 equals the average variable cost of $4.

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

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