Search SchoolNGR

Friday, 20 March 2026
Register . Login

In the long-run, a firm must shut down if its average revenue is

In the long-run, a firm must shut down if its average revenue is
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Greater than average cost
  • B Less than average variable cost
  • C Equal to the minimum average revenue is
  • D Equal to the average cost
Correct Answer: Option B
Explanation:
In the long-run, a firm shut down if its average revenue ( price) is less than average variable cost. A firm shut down, when it is unable to cover its average variable cost or average cost or Average fixed cost is zero(0).

Share question on: