For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units

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answerhappygod
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For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units

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For a particular competitive firm, the minimum value of averagevariable cost (AVC) is $12 and is reached when 200 units ofoutput are produced. For the same firm, the minimum value ofaverage total cost (ATC) is $15 and is reached when 230 unitsof output are produced. Which of the following statements iscorrect?
a. In the short run, the firm will shut down if the price of itsproduct is $13.b. In the long run, the firm will shut down if the price of itsproduct is $16.c. If the price of its product is $15, then the will earn zeroeconomic profit in the short run and there is no incentive forfirms to enter or exit the market in the long run.d. All of the above are correct.
(PLEASE SHOW ALL WORK!!)
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