In the short term, which of the following situation would the competitive seller close down?

SCHOLARSHIP QUESTION:

A. When he cannot produce at an economic profit
B. when price falls short of average variable cost at every level of output
C. When price falls short of average fixed cost at every level of output
D. When price falls short of average total cost at every level of output
E. When there is no point where marginal costs and marginal reserves are equal

The Correct Answer is:

B. when price falls short of average variable cost at every level of output

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