Table 14-15
-Refer to Table 14-15. What is the lowest price at which this firm would operate in the short run?

Question

Table 14-15 
-Refer to Table 14-15. What is the lowest price at which this firm would operate in the short run?

Quizplus · Accepted Answer

In the short run, the firm will continue to operate as long as it can cover its variable costs. The lowest point at which the firm can cover its variable costs is at a price of $3, where average variable cost equals price. At any price below $3, the firm will not be able to cover its variable costs and will shut down in the short run. Thus, the best choice is A) $3.

Table 14-15 -Refer to Table 14-15. What Is the Lowest Price at Lowest