A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.At what price does the firm consider shutting-down in the long run?

A) $45
B) $40
C) $95
D) $55

Question

Oscar Quintana · Accepted Answer

Final Answer : D, Explanation :  The firm will shut down in the long run if the price is below the average total cost. In this case, the average total cost is $55, so the firm will shut down if the price is below $55.

A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.At what price does the firm consider shutting-down in the long run?

A) $45
B) $40
C) $95
D) $55

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Learning Objectives

Related questions

A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.At what price does the firm consider shutting-down in the long run?A) ​$45B) $40C) $95D) ​$55

Definitions

Learning Objectives

Learning Objectives

Related questions

A firm sells 300,000 units per week.It charges $ 35 per unit,the average variable costs are $40,and the average costs are $55.At what price does the firm consider shutting-down in the long run?

A) $45
B) $40
C) $95
D) $55