If the average total cost of supplying a good exceeds the price at which the good can be sold, then entrepreneurs have:
A) an incentive to supply the good.
B) no incentive to supply the good.
C) an incentive to supply only a small amount of the good.
D) an incentive to raise the average total cost of producing the good.

Question

Quizplus · Accepted Answer

Entrepreneurs have no incentive to supply the good if the average total cost exceeds the selling price, as this would result in a loss.

If the Average Total Cost of Supplying a Good Exceeds