Exhibit 7-3  Cost Per Unit Curves If the Price of the Firm's

question 90

Multiple Choice

Exhibit 7-3  Cost per unit curves If the price of the firm's product in Exhibit 7-3 is $1.50 per unit, which intersects AVC at point B, the firm should:

• A) continue to operate because it is earning a positive economic profit.
• B) stay in operation for the time being even though it is making a pure economic loss.
• C) shut down temporarily.
• D) shut down permanently.