Shut down and produced nothing

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Reference no: EM131045901

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 or AR 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.

Reference no: EM131045901

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