The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-In the short run, a firm attempting to minimize losses:
A) must leave the industry in order to maximize opportunity costs.
B) will produce as long as marginal cost equals marginal revenue.
C) will produce as long as total revenue exceeds total variable cost.
D) will produce as long as total revenue exceeds total fixed cost.
E) will produce as long as competitors continue to produce.
Correct Answer:
Verified
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