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4 Mar 2018
42) Suppose a firm is trying to decide whether or not to temporarily shut down to minimize total loss. If price equals average variable cost, then A) total variable cost equals total fixed cost. B) total revenue equals total variable cost, and the loss equals total fixed cost. C) total revenue equals total fixed cost, and the loss equals total variable cost. D) total cost equals total variable cost. E) total fixed cost is zero.
42) Suppose a firm is trying to decide whether or not to temporarily shut down to minimize total loss. If price equals average variable cost, then A) total variable cost equals total fixed cost. B) total revenue equals total variable cost, and the loss equals total fixed cost. C) total revenue equals total fixed cost, and the loss equals total variable cost. D) total cost equals total variable cost. E) total fixed cost is zero.
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