Narrbegin Exhibit 7.5 Short-run profit and loss
-According to Exhibit 7.5, this firm will be making a short-run loss, but will continue to produce when the price is:

Question

Narrbegin Exhibit 7.5 Short-run profit and loss  
-According to Exhibit 7.5, this firm will be making a short-run loss, but will continue to produce when the price is:

Quizplus · Accepted Answer

In the short run, a firm will continue to produce as long as the price covers the average variable cost (AVC). If the price is between $15 and $20, it suggests that the firm is covering its AVC but not its average total cost (ATC), leading to a short-run loss but still continuing production.