A profit-maximizing firm should shut down in the short run if the average revenue it receives is less than: Points : 1 Average variable cost Average total cost Average fixed cost Marginal cost
The marginal revenue curve has another meaning as well. It is the demand curve facing a perfectly competitive firm. If the center shuts down now, revenues are zero but it will not incur any variable costs and would only need to pay fixed costs of $10,000. The cost of production is divided into two parts […]