At a price of _____ the firm is indifferent about staying open or shutting down.
a. $6
b. $2
c. $4
d. $8
The firm’s supply curve is every point along the MC curve above _____.
a. MR
b. MC
c. ATC
d. AVC
Homework Answers
1.
At P = minimum AVC, the firm will be indifferent about staying open or shutting down
Here minimum AVC = 4
correct answer is option c. 4
2.
firm’s supply curve is every point along the MC curve above AVC
correct answer is option d. AVC
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At a price of _____ the firm is indifferent about staying open
or shutting down.
a....
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