If P < AVC, P < ATC, and Marginal Costs

question 10

Multiple Choice

If P < AVC, P < ATC, and marginal costs are increasing, then:

• A) the firm should produce in the short-run
• B) the firm should shut down in the short-run
• C) the firm should shut down in the long-run
• D) the firm should produce in the long run

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