What is the “shut down rule” for a firm offering to sell its product in a highly competitive market?
A. Shut down unless average revenue equals or exceeds average fixed costs.
B. Shut down if total revenue is less than total variable cost.
C. Offer a particular quantity of a product for sale, but only if average total costs of doing so are less than average revenue.
D. Shut down if it is not possible to operate without incurring a loss.
E. None of the statements in A—D accurately describe the shutdown rule for a monopolist.