If the price were $60,this firm would _________ in the short run and __________ in the long run.

Name: If the price were $60,this firm would _________ in the short run and __________ in the long run.
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Question

Quizplus · Accepted Answer

In the short run, if the price covers the variable costs, the firm will continue to operate to cover at least a portion of its fixed costs. In the long run, if the price also covers the average total costs, the firm will stay in business as it can cover all its costs and potentially make a profit.

If the Price Were $60,this Firm Would _________ in the Short