The minimum value of average variable cost

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For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of output are produced. For the same firm, the minimum value of average total cost (ATC) is $15 and is reached when 230 units of output are produced. Which of the following statements is correct? A. In the short run, the firm will shut down if the price of its product is $11.

Reference no: EM131097207

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