In the Short Run, the Firm Should Shut Down When

question 28

Multiple Choice

In the short run, the firm should shut down when

• A) price is equal to the average total cost of production.
• B) price is less than the minimum of the average variable cost of production.
• C) price is equal to the minimum of the marginal cost of production.
• D) price is equal to the minimum of the average total cost of production.

---

Definitions:

Purchasing Bicycles

Refers to the consumer activity of buying bicycles, which could involve considerations of cost, quality, and utility.

Transaction

An exchange or transfer of goods, services, or funds between two or more parties, often involving a contractual agreement.

Gains And Loses

Refers to the increases or decreases in economic benefit, typically associated with investments or transactions.

Informed Exchange

A transaction where all parties involved have access to essential information relevant to the trade or deal.