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hiusy98 hiusy98
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7 years ago
When price is less than average variable cost at the profit-maximizing level of output, a firm should:
A) continue to produce the level of output at which marginal revenue equals marginal cost if it is operating in the short run.
B) continue to produce the level of output at which marginal revenue equals marginal cost if it is operating in the long run.
C) shutdown, because it will lose nothing in that case.
D) shutdown, because it cannot even cover all of its variable costs let alone its fixed costs if it stays in business.
Textbook 
Economics for Managers

Economics for Managers


Edition: 3rd
Author:
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sofreshsofresh
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7 years ago
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1
Sweet Caroline
Good times never seemed so good
I've been inclined,
To believe they never would
Oh, no, no

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hiusy98 Author
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#2
7 years ago
This course was so challenging before I signed up here, thanks
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