McqMate
| Q. |
A firm may decide to shut down in the short run |
| A. | if profit maximization occurs at an output level where price is less than average variable cost |
| B. | if profit maximization occurs at an output level where price is less than average total cost |
| C. | profit maximization occurs at an output level where price is less than average total cost but greater than average variable cost |
| D. | if profit maximization occurs at an output level where price is equal to average total cost and the firm does not foresee changes to the market price in the future |
| Answer» A. if profit maximization occurs at an output level where price is less than average variable cost | |
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