Microeconomics

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Moderate

Shut Down Condition

MICRO-3P5OSL

A company that produces hazelnuts faces costs described by the function $TC(q) = 100 + 10q + 20q^2$. Suppose that the market for hazelnuts is perfectly competitive, and the prevailing price in the market is given by $p$. For what range of prices will the company prefer to shut down in the short run?

A

$0 \leq p < 10$

B

$10 \leq p < 20$

C

$0 \leq p \leq 10$

D

$0 \leq p \leq 20$