Assume the following total cost schedule for a perfectly competitive firm. $$\begin{array} { | c | c | c | }
\hline \text { Output } & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \
\hline 0 & 0 & 100 \
\hline 1 & 40 & 100 \
\hline 2 & 70 & 100 \
\hline 3 & 120 & 100 \
\hline 4 & 180 & 100 \
\hline 5 & 250 & 100 \
\hline 6 & 330 & 100 \
\hline
\end{array}$$ TABLE 9- 2
-Refer to Table 9- 2.In order to maximize its profits,the firm should continue to produce in the short run even if the market price is less than its ATC as long as the price is greater than or equal to

Question

Assume the following total cost schedule for a perfectly competitive firm. $$\begin{array} { | c | c | c | } 
\hline \text { Output } & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \
\hline 0 & 0 & 100 \
\hline 1 & 40 & 100 \
\hline 2 & 70 & 100 \
\hline 3 & 120 & 100 \
\hline 4 & 180 & 100 \
\hline 5 & 250 & 100 \
\hline 6 & 330 & 100 \
\hline
\end{array}$$ TABLE 9- 2
-Refer to Table 9- 2.In order to maximize its profits,the firm should continue to produce in the short run even if the market price is less than its ATC as long as the price is greater than or equal to

Quizplus · Accepted Answer

In the short run, a firm should continue to produce as long as the price is greater than or equal to the average variable cost (AVC) to cover its variable costs and contribute to fixed costs.

Assume the Following Total Cost Schedule for a Perfectly Competitive