If AVC is $10 when P = MC, a firm
A) will have positive economic profits if price is greater than $10.
B) is producing too little output.
C) should shut down if price is less than $10.
D) is experiencing economies of scale.
Answer: C
Economics
You might also like to view...
Which of the following is accurate concerning WTO membership?
a. No state has ever left the group. b. The organization had 100 members as of 2015. c. The largest members in terms of GDP are Iran and Algeria. d. States are no longer eagerly seeking membership as they had in the past.
Economics
For a common resource, the marginal private benefit of the resource is greater than the marginal social benefit
Indicate whether the statement is true or false
Economics