1. As manager of a company that is trying to maximize long-run profit, which of the following is a rational profit-maximizing business decision?

a. In the long run, shut down the business if price falls below long-run average costs.

b. In the long run, shut down the business if price falls below short-run average variable costs.

c. In the short run, shut down the business if price falls below average costs.

d. In the short run, shut down the business if price is not high enough to cover fixed costs.