At which stage of production should a firm shut down? Whe...
At which stage of production should a firm shut down? When
AVC=ATC
AVC
AVC>price
AVC=MC
Correct answer is C
A firm will choose to implement a shutdown of production when the revenue received from the sale of the goods or services produced cannot even cover the variable costs of production. In that situation, the firm will experience a higher loss when it produces, compared to not producing at all.
As long as price is above average variable costs, the firm should stay in business to minimize its losses in the short run.
A rightward shift of the budget line is caused by a ...
Money market differs from capital market in that it ...
The distribution of goods by the price system is distorted when ...
Positive check as envisaged by Thomas Malthus can be prevented if ...
In an attempt to correct a deficit balance of payment, a country may decide to increase ...
Budget deficit can be financed by ...