In the long run if the price is below average total cost,the firm will

Name: In the long run if the price is below average total cost,the firm will
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the price is below the average total cost, it means the firm is not earning enough revenue to cover its costs. If this continues in the long run, the firm will eventually exhaust its resources and will not be able to sustain itself in the market. Therefore, the best choice is A) go out of business.

In the Long Run If the Price Is Below Average