When a perfectly competitive firm decides to shut down, it is most likely that:
A) marginal cost is above average variable cost
B) marginal cost is above average total cost
C) price is below the firm's average variable cost
D) fixed costs exceed variable costs

Question

When a perfectly competitive firm decides to shut down, it is most likely that:
A) marginal cost is above average variable cost
B) marginal cost is above average total cost
C) price is below the firm's average variable cost
D) fixed costs exceed variable costs

When a perfectly competitive firm decides to shut down, it is most likely that:

A) marginal cost is above average variable cost

B) marginal cost is above average total cost

C) price is below the firm's average variable cost

D) fixed costs exceed variable costs

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When a perfectly competitive firm decides to shut down, it is most likely that: A) marginal cost is above average variable cost B) marginal cost is above average total cost C) price is below the firm's average variable cost D) fixed costs exceed variable costs