In the long run, all fo a firms costs are variable. inthis case, the exit criter

ID: 1252301 • Letter: I

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In the long run, all fo a firms costs are variable. inthis case, the exit criterion for a profit-maximizing firm isto. a. shutdown if price is less than average total cost. b. shutdown if price is greater than average total cost. c.shutdown if average revenue is greater than average fixedcost. d.shutdown if average revenue is greater than marginalcost. In the long run, all fo a firms costs are variable. inthis case, the exit criterion for a profit-maximizing firm isto. a. shutdown if price is less than average total cost. b. shutdown if price is greater than average total cost. c.shutdown if average revenue is greater than average fixedcost. d.shutdown if average revenue is greater than marginalcost.

Explanation / Answer

In the long run, all fo a firms costs are variable. inthis case, the exit criterion for a profit-maximizing firm isto. a. shutdown if price is less than averagetotal cost. P=MR<ATC=AVC, shutdown b. shutdown if price is greater than average total cost.- youare making a profit P=MR>ATC c.shutdown if average revenue is greater than average fixedcost. NO fixed cost anymore d.shutdown if average revenue is greater than marginal cost. -I don't think you can compare the two

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In the long run, all fo a firms costs are variable. inthis case, the exit criter

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