A firm will not shut down in the short run as long as price exceeds A average

A firm will not shut down in the short run as long as

This preview shows page 2 - 4 out of 4 pages.

A firm will not shut down in the short run as long as price exceeds: A.average fixed cost at the level of output where marginal revenue equals marginal cost.B.marginal cost at the level of output where marginal revenue equals marginal cost.C.average variable cost at the level of output where marginal revenue equals marginal cost.Your answer is correct.D.total revenue at the level of output where marginal revenue equals marginal cost In the short run, the firm should shut down when: A firm's short−run supply curve is the firm's:
Image of page 2
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 4 pages?

  • Summer '13
  • hernandez
  • Economics, shut down, Average cost

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture