If Price Falls Below the Minimum Point on the AVC

question 90

Multiple Choice

If price falls below the minimum point on the AVC curve, in the short run the firm should ________, and in the long run the firm should ________.

• A) produce where MC = MR; exit the industry
• B) shut down; exit the industry
• C) produce where MC = MR; expand
• D) shut down; expand

---

Definitions:

Intersexed

A term describing individuals born with biological sex characteristics (such as chromosomes, genitalia, and hormone levels) that do not fit typical binary notions of male or female bodies.

Genitalia

The external and internal organs of the reproductive system in both males and females, responsible for sexual reproduction.

Sex Chromosomes

Chromosomes responsible for determining the biological sex of an organism, notably the X and Y chromosomes in mammals that govern male and female traits.

Population Percentage

A numerical representation that shows a part of the total population as a percentage of the whole.