Assume that the market for oranges is perfectly competitive. Carmen is an orange producer and her minimum average variable cost is $8.50, her minimum average fixed cost is $1, and her minimum average total cost is $14.80. In terms of shortrun decisions, what is the lowest market price below which, Carmen should shut down to minimize her losses? Explain

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
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  1. Assume that the market for oranges is perfectly competitive. Carmen is an orange producer and her minimum average variable cost is $8.50, her minimum average fixed cost is $1, and her minimum average total cost is $14.80. In terms of shortrun decisions, what is the lowest market price below which, Carmen should shut down to minimize her losses? Explain 
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