If price is less than minimum average variable cost,a perfectly competitive firm that continues to produce in the short run _____
A) earns a positive economic profit.
B) incurs a loss greater than its fixed cost.
C) can cover all of its fixed cost and some of its variable cost.
D) can cover all of its variable cost and some of its fixed cost.
E) can cover both its fixed cost and its variable cost.
Correct Answer:
Verified
Q91: If a manufacturer shuts down in the
Q92: Exhibit 8.7 Q93: In the short run,a firm will produce Q94: Suppose a price-taking firm produces 400 units
![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents