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    Question

    In the short run, a monopolist will shut down if it is

    producing a level of output where marginal revenue is equal to short-run marginal cost and price is
    A greater than average total cost. Correct Answer Incorrect Answer
    B less than average total cost. Correct Answer Incorrect Answer
    C greater than average variable cost. Correct Answer Incorrect Answer
    D less than average variable cost. Correct Answer Incorrect Answer
    E less than average fixed cost Correct Answer Incorrect Answer

    Solution

    In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short-run marginal cost and price is less than average variable cost

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