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Chapter 9 Quiz1.Assume the following: sales price is $9; output is 5,000 units, average total cost is$12, average variable cost is $9.50. What should the firm do and why?a.Continue to operate and reduce costs to earn a profitb.Shut down because the firms earning a loss of $15,000c.Shut down, because the price is less than the average variable costd.Continue to produce because price can be increased
2.In a competitive market, a shift in the demand curve to the left means that eventually
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3.In the long run, a shift in the demand curve to the left in a competitive market means