In the short run, the competitive firm should reduce its output to zero and shut down...
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In the short run, the competitive firm should reduce its output to zero and shut down if: a) price falls below average variable cost. b) the demand curve faced by the firm becomes horizontal. c) price falls below the average total cost of production. d) the firm eams no positive economic profit. In the short run, the competitive firm should reduce its output to zero and shut down if: a) price falls below average variable cost. b) the demand curve faced by the firm becomes horizontal. c) price falls below the average total cost of production. d) the firm eams no positive economic profit.
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