Suppose a monopolistically competitive firm is producing at the profit-maximizing output level and is receiving a price that is sufficient to cover only its average variable cost. If the price falls further the firm should suspend its operations
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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As long as output increases
A. average total costs decrease. B. average fixed costs decrease. C. average variable costs decrease. D. marginal costs decrease.
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