(Consider This) An unprofitable motel will stay open in the short run if
A) price (average nightly room rate) exceeds average variable cost.
B) marginal revenue exceeds marginal cost.
C) price (average nightly room rate) exceeds average fixed cost.
D) marginal revenue exceeds price.

Question

Quizplus · Accepted Answer

In the short run, a firm will continue to operate if the price covers the average variable costs, even if it is not covering total costs, to minimize losses.

(Consider This) an Unprofitable Motel Will Stay Open in the Short