For the perfectly competitive firm, the profit- maximizing decision to shut down is made when the price
A.
falls below minimum average total cost.
B.
is greater than minimum average variable cost, but lower than minimum average total cost.
C.
falls below minimum average variable cost.
D.
is equal to minimum average total cost.
E.
is equal to average fixed cost.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：32
Answer:
C
Knowledge points:
3.2 Short-Run Production Costs
3.6 Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
3.7 Perfect Competition
Solution:
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