Which statement is true?

Question

Quizplus · Accepted Answer

All the statements provided are true in the context of economic theory. A) A firm will continue to operate in the short run as long as it can cover its variable costs with its total revenue, even if it's not covering its fixed costs, because shutting down would mean a loss equal to the fixed costs. B) A firm will shut down in the short run if its total revenue does not cover its variable costs, as continuing to operate would increase its losses beyond the fixed costs. C) A firm is considered to be operating at peak efficiency when it minimizes its average total cost, which occurs at the output level where average total cost is at its lowest.

Which Statement Is True