Economics · Theory of Firm
A firm will shut down rather than carry on producing in the short run if:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Price is less than Average Revenue (AR)
- 2Marginal Revenue (MR) is less than Marginal Cost (MC)
- 3Total Revenue (TR) is less than Total Variable Cost (TVC)✓
- 4Average Revenue (AR) is less than Average Total Cost (ATC)
Correct answer
Total Revenue (TR) is less than Total Variable Cost (TVC)
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