A competitive firm should always continue to operate in the short run as long as A)P

Name: A competitive firm should always continue to operate in the short run as long as A)P AVC.
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Question

A competitive firm should always continue to operate in the short run as long as
A)P < ATC.
B)P < AVC.
C)MR > AVC.

Quizplus · Accepted Answer

A competitive firm should continue to operate in the short run if the marginal revenue (MR) is greater than the average variable cost (AVC), as it can cover its variable costs and contribute to fixed costs.

A Competitive Firm Should Always Continue to Operate in the Short