If the firm operates in the short run and goes out of business in the long run,then the price

Question

Quizplus · Accepted Answer

In the short run, if a firm decides to go out of business in the long run, it means that currently, the price is not high enough to cover all its costs in the long term. However, it is still operating because the price covers its variable costs and possibly some fixed costs, placing it between the shutdown point (where price equals variable costs) and the break-even point (where total costs are covered).

If the Firm Operates in the Short Run and Goes