The minimum price at which a firm would produce in the short run rather than shut downimmediately is the point at whichprice is equal to marginal costprice equals the minimum point on its average variable cost curve.O price is equal to average total costO total revenue is equal to total cost

The firm will shutdown its production facility if it is not able to recover its variable cost in the…

The minimum price at which a firm would produce in the short run rather than shut down immediately is the point at which O price is equal to marginal cost O price equals the minimum point on its average variable cost curve.

The minimum price at which a firm would produce in the short run rather than shut down immediately is the point at which O price is equal to marginal cost O price equals the minimum point on its average variable cost curve.

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 39P: The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total...

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The minimum price at which a firm would produce in the short run rather than shut down
immediately is the point at which
price is equal to marginal cost
price equals the minimum point on its average variable cost curve.
O price is equal to average total cost
O total revenue is equal to total cost

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