|Question||Fill in the blanks to make the following statements correct.
a. The shut-down price is the price at which the firm can just cover its _______.
b. If the average variable cost of producing any given level of output exceeds the price at which it can be sold, then the firm should _______.
c. If a firm is producing a level of output such that MC >MR, that firm should _______ output.
d. The profit-maximizing level of output for a price- taking firm is the output at which MR and MC are _______ and the gap between TR and TC is _______.
e. If a perfectly competitive firm is producing its profit-maximizing level of output and the price of MC its output rises, then MR _______ will be and the firm should _______ output.