Table 14-15-a
-Refer to Table 14-15-a. What is the lowest price at which this firm would operate in the short run?

Question

Table 14-15-a 
-Refer to Table 14-15-a. What is the lowest price at which this firm would operate in the short run?

Quizplus · Accepted Answer

The lowest price at which this firm would operate in the short run is the shutdown point, which is the point where the price is equal to the minimum average variable cost. In this case, the minimum average variable cost is $5, so the firm would continue to operate as long as the price is above $5. Therefore, the best choice is A) $5.

Table 14-15-A -Refer to Table 14-15-A. What Is the Lowest Price at Lowest