If there is no level of output at which the firm earns a profit, the firm should:
A) shut down.
B) perform an analysis regarding whether to operate or not.
C) diversify.
D) try to push the price up.

Question

Quizplus · Accepted Answer

A firm should perform an analysis regarding whether to operate or not, considering factors like variable costs and whether it can cover these costs in the short run, even if it cannot make a profit.

If There Is No Level of Output at Which the Firm