If a firm's MR currently equals MC and product price = $24, AVC = $22 and ATC = $26, then in the long run this firm:

Name: If a firm's MR currently equals MC and product price = $24, AVC = $22 and ATC = $26, then in the long run this firm:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In the long run, if a firm's average total cost (ATC) is greater than the product price, the firm will incur losses and eventually go out of business. Here, ATC ($26) is greater than the product price ($24), indicating a loss.

If a Firm's MR Currently Equals MC and Product Price