-The above figure shows the long-run cost curves for a competitive firm that produces widgets.All firms in the widget industry are identical.If the firm is to operate in the short run,price must be at least
A) $ 0.
B) $ 8.
C) $10.
D) $ 50.

Question

-The above figure shows the long-run cost curves for a competitive firm that produces widgets.All firms in the widget industry are identical.If the firm is to operate in the short run,price must be at least
A) $ 0. 
B) $ 8. 
C) $10. 
D) $ 50.

Quizplus · Accepted Answer

In the short run, a firm must cover its average variable costs (AVC) to continue operating. The minimum point on the AVC curve is typically the shutdown point. If the price is at least $10, the firm can cover its AVC and continue operating in the short run.

-The Above Figure Shows the Long-Run Cost Curves for a Competitive