A firm's marginal cost has a minimum value of $80, its average variable cost has a minimum value of $90, and its average total cost has a minimum value of $100. Then the firm will shut down in the short run once the price of its product falls below
A)$100.
B)$90.
C)$80.
D)$40.

Question

Quizplus · Accepted Answer

The firm will shut down in the short run if the price falls below the minimum average variable cost, which is $90 in this case.

A Firm's Marginal Cost Has a Minimum Value of $80