MCQOPTIONS
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| 1. |
When the price is less than the average variable cost, the firm should …………. |
| A. | Continue to operate till the market recover |
| B. | Shut down its operation for the time being |
| C. | Retrench workers and pay them compensation |
| D. | Clear the existing stock at a price less than the prevailing price to beat the competitors |
| Answer» C. Retrench workers and pay them compensation | |