Use the following scenario to answer the following questions:
Chuck Diesel Burger is a food truck in Houston,Texas.Imagine that Chuck Diesel Burger's minimum average total cost (ATC)is $3.75 and that its minimum average variable cost (AVC)is $2.50.Assume there are no barriers to entrer into or exit from the food-truck market.
-Chuck Diesel Burger will suffer a loss but still produce if the price is equal to
A) $4.00.
B) $3.75.
C) $3.00.
D) $2.50.
E) $2.00.

Question

Quizplus · Accepted Answer

Chuck Diesel Burger will suffer a loss but still produce if the price is equal to $3.00 because it covers the average variable cost (AVC) of $2.50 but is below the average total cost (ATC) of $3.75.

Use the Following Scenario to Answer the Following Questions