If price is above the break-even point,in the short run the firm will _____ and in the long run the firm will ____.

Question

Quizplus · Accepted Answer

If price is above the break-even point, the firm is generating profit and will continue to operate in the short run. In the long run, the firm will evaluate its profitability and may choose to expand or exit the market based on its overall performance. However, with the information given in the question, the firm will still stay in business as it is operating profitably in the short run.

If Price Is Above the Break-Even Point,in the Short Run