The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if: A total revenue is less than total cost at the profit-maximising output rate all the answers to this question are correct C price is less than minimum average variable cost at the profit-maximising output rate D I do not want to answer this question. E average revenue is less than average total cost at the profit-maximising output rate F price is less than average total cost at the profit-maximising output rate

The analysis of the production decision suggests that a profit-maximising firm should shut down production in the short run if: A total revenue is less than total cost at the profit-maximising output rate all the answers to this question are correct C price is less than minimum average variable cost at the profit-maximising output rate D I do not want to answer this question. E average revenue is less than average total cost at the profit-maximising output rate F price is less than average total cost at the profit-maximising output rate

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...

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