If a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be TRUE?         A)p < AVC for all levels of output.       B)The firm will earn zero profit.       C)p < AVC only if the firm has no fixed costs.       D)p < AVC only for the level of output at which p = MC.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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If a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be TRUE?
 
 
 
 
A)p < AVC for all levels of output.
 
 
 
B)The firm will earn zero profit.
 
 
 
C)p < AVC only if the firm has no fixed costs.
 
 
 
D)p < AVC only for the level of output at which p = MC.
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