A firm's marginal cost has a minimum value of $50, its average variable cost has a minimum value of $80, and its average total cost has a minimum value of $90. Then the firm will shut down if the price of its product falls below

a. $90.

b. $80.

c. $50.

d. $40.

correct option is b i. e $80

Explanation:

Given details

marginal cost is $50

average variable cost is $80

average total cost is $90

From the data given above we can conclude that firm will shut down if product price will fall below than $80

shut conditioned occur when product price fall below than average variable cost.

Therefore correct option is b i. e $80