A profit-maximizing firm will shut down in the short run when:
a. price is less than average variable cost.
b. price is less than average total cost.
c. average revenue is greater than marginal cost.
d. average revenue is greater than average fixed cost.

Question

A profit-maximizing firm will shut down in the short run when:
a. price is less than average variable cost.
b. price is less than average total cost.
c. average revenue is greater than marginal cost.
d. average revenue is greater than average fixed cost.

A profit-maximizing firm will shut down in the short run when:

a. price is less than average variable cost.

b. price is less than average total cost.

c. average revenue is greater than marginal cost.

d. average revenue is greater than average fixed cost.

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A profit-maximizing firm will shut down in the short run when: a. price is less than average variable cost. b. price is less than average total cost. c. average revenue is greater than marginal cost. d. average revenue is greater than average fixed cost.