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If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and price isequal to average total cost, then the firm

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Question:

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and price isequal to average total cost, then the firm

A.

should shut down

B.

should decrease output, but should not shut down

C.

should increase output

D.

None of the above is correct

Answer» d. None of the above is correct

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