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Commerce · Q1267

Economics

Graduate and Post Graduate · Commerce · question 1267

Q1267

A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost, and the price is

A.
Greater than average total cost
B.
Less than average total cost
C.
Greater than average variable cost
D.
Less than average variable cost
Answer

Answer: Option D

Solution

Answer: Option D
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