Suppose you find that the price of your product is less than minimum AVC.You should:

A) minimize your losses by producing where P = MC.
B) maximize your profits by producing where P = MC.
C) close down because,by producing,your losses will exceed your total fixed costs.
D) close down because total revenue exceeds total variable cost.

Minimum AVC

The lowest point on the Average Variable Cost curve, indicating the most efficient scale of production where variable costs per unit are minimized.

Economic Losses

Refers to the situation where total costs exceed total revenues, leading to a negative net income for a business.

Marginal Cost

The growth in overall costs resulting from the manufacture of one more unit of a good or service.