What is the shut down rule for firm offering

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Reference no: EM131391950

What is the “shut down rule” for a firm offering to sell its product in a highly competitive market?

A. Shut down unless average revenue equals or exceeds average fixed costs.

B. Shut down if total revenue is less than total variable cost.

C. Offer a particular quantity of a product for sale, but only if average total costs of doing so are less than average revenue.

D. Shut down if it is not possible to operate without incurring a loss.

E. None of the statements in A—D accurately describe the shutdown rule for a monopolist.

Reference no: EM131391950

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