In the long-run, some firms will exit the market if the price of the good offered for sale is less than

Name: In the long-run, some firms will exit the market if the price of the good offered for sale is less than
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the price of the good offered for sale is less than the average total cost, then the firm is making a loss on each unit sold. In the long-run, firms cannot sustain losses indefinitely and will eventually exit the market. Therefore, the correct answer is C.

In the Long-Run, Some Firms Will Exit the Market If