If a firm's total revenue is not enough to make good even the ________ it is better for firm to shut down.

CA Foundation · Business Economics · RTP · January 2026
If a firm's total revenue is not enough to make good even the ________ it is better for firm to shut down.
(A) A. Total fixed cost
(B) B. Marginal cost
(C) C. Average fixed cost
(D) D. Total variable cost

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. Total variable cost

Topics: Price Determination in Different Markets

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