A perfectly competitive firm should reduce output or shut down in the short run if marketprice is equal to marginal cost and price is:

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Question:

A perfectly competitive firm should reduce output or shut down in the short run if marketprice is equal to marginal cost and price is:

A.

greater than average total cost

B.

less than average total cost

C.

greater than average variable cost

D.

less than average variable cost

Answer» d. less than average variable cost

Note: The above multiple-choice question is for all general and Competitive Exams in India.