Exhibit 7-3 Cost per unit curves As shown in Exhibit 7-3, the firm will produce in the short run if the price is at least equal to:

Question

Exhibit 7-3  Cost per unit curves  As shown in Exhibit 7-3, the firm will produce in the short run if the price is at least equal to:

Quizplus · Accepted Answer

In the short run, the firm will produce if it can cover its variable costs. This means that the price per unit must be equal to or greater than the firm's minimum average variable cost (MC) point. 
Point B represents the minimum point on the average variable cost (AVC) curve, which is $1.50 per unit. Therefore, the firm will produce in the short run if the price is at least equal to $1.50 per unit (point B). Points A, C, and D are not relevant for this decision because they are either below or above the minimum AVC point.

Exhibit 7-3 Cost Per Unit Curves as Shown in Exhibit