If price is between the shutdown and break-even points,in the short run the firm will _____ and in the long run the firm will ____.

Question

Quizplus · Accepted Answer

In the short run, if the price is between the shutdown and break-even points, a firm will continue to operate because it can cover its variable costs, even though it's not covering its total costs. In the long run, if it cannot cover total costs, the firm will go out of business as it's not sustainable to operate without making a profit.

If Price Is Between the Shutdown and Break-Even Points,in the Short