Microeconomics: Principles, Applications, and Tools (8th Edition)

by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen

Published by Prentice Hall

ISBN 10: 0-13294-886-9

ISBN 13: 978-0-13294-886-9

Chapter 9 - Perfect Competition - Exercises - 9.3 The Firm's Shut-Down Decision - Page 229: 3.8

Answer

D less shut down

Work Step by Step

A point below D is less than the average variable cost. This will not be feasible for the firm to continue, and will decide to shut down.

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