Under what circumstances will janets shop shut down

Reference no: EM131936418

Problem

Suppose Janet sells papayas at a perfectly competitive market in Thailand. While her average total cost (ATC) reaches a minimum level of $3, her minimum average variable cost (AVC) is $2.

a. At what price will Janet reach the equilibrium point? Will Janet sell any papayas at that point?
b. Under what circumstances will Janet's shop shut down?

Reference no: EM131936418

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