In the short run,a firm will produce as long as the price is GREATER than its:

Question

Quizplus · Accepted Answer

In the short run, a firm will continue to produce as long as the price is greater than its average variable cost (AVC) to cover its variable costs, even if it's not covering its total costs. This is because, in the short run, the firm aims to cover at least its variable costs, while fixed costs are sunk and do not affect the short-term decision to produce.

In the Short Run,a Firm Will Produce as Long as the Price