A monopolistically competitive firm that is incurring a loss will shut down if

A) marginal revenue is less than marginal cost.
B) revenues are less than variable costs.
C) price is less than average total cost.
D) price is less than marginal cost.

Marginal Revenue

The increase in earnings a business gets by selling one extra unit of its goods or services.

Marginal Cost

The cost added by producing one additional unit of a product or service, a crucial concept for decision-making in business and economics.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labour costs.