) Suppose a firm is trying to decide whether to temporarily shut down to minimize its total loss. If the prevailing competitive market price equals this firm’s average variable cost (P = AVC) and the firm continues to produce, A. The firm’s total revenue equals its total variable cost, and the firm suffers loss equal to its total fixed cost. B. The firm’s total fixed cost is zero. C. The firm’s total variable cost equals its total fixed cost. D. The firm’s total cost equals its total variable cost. E. The firm’s total revenue equals its total fixed cost, and the firm suffers the loss equal to its total variable cost.

) Suppose a firm is trying to decide whether to temporarily shut down to minimize its total loss. If the prevailing competitive market price equals this firm’s average variable cost (P = AVC) and the firm continues to produce, A. The firm’s total revenue equals its total variable cost, and the firm suffers loss equal to its total fixed cost. B. The firm’s total fixed cost is zero. C. The firm’s total variable cost equals its total fixed cost. D. The firm’s total cost equals its total variable cost. E. The firm’s total revenue equals its total fixed cost, and the firm suffers the loss equal to its total variable cost.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 4.8P

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