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Posted: April 30th, 2021
A perfect competitor finds that the best it can do if it produces any outpu
A perfect competitor finds that the best it can do if it produces any output is to produce a daily output of 100 units which it will sell at the market price orAR of £10, but even then it would then make a loss. Under what circumstances would it definitely make a smaller loss if it shut down and produced nothing?a)If, at an output of 100 a day, its AVC would be above £10.b)If, at an output of 100 a day, its AFC would be above £10.c)If, at an output of 100 a day, its SAC would be above £10.d) If, at an output of 100 a day, its SMC would be above £10.
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