In the short run,a purely competitive seller will shut down if:

A) it cannot produce at an economic profit.
B) price is less than average variable cost at all outputs.
C) price is less than average fixed cost at all outputs.
D) there is no point at which marginal revenue and marginal cost are equal.

Purely Competitive

A market structure characterized by many small firms producing identical products, where no single firm can influence the market price.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the profit beyond the normal rate of return.

Average Variable Cost

Average variable cost is the total variable cost divided by the quantity of output produced, representing the variable cost per unit of output.