In the long run,a firm will exit an industry if the market price is less than its
A) break-even price.
B) shutdown price.
C) marginal cost.
D) fixed cost.

Question

Quizplus · Accepted Answer

In the long run, a firm will exit an industry if the market price falls below its break-even price, which is the price at which total revenue equals total cost, allowing the firm to cover both its variable and fixed costs.

In the Long Run,a Firm Will Exit an Industry If