Asked by
Marques Chaleunphonh
on Dec 11, 2024
Verified
In the short run, a firm that is a price taker will stay in business as long as
A) price equals average revenue.
B) marginal revenue is greater than or equal to marginal cost.
C) price exceeds average variable cost.
D) price is less than average variable cost.
Average Variable Cost
The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.
Marginal Revenue
The additional income earned from selling one more unit of a good or service, a key factor in decision-making for producing additional units.
- Elucidate the situations that require a company to continue, diminish, or discontinue production efforts in the short run.
- Acknowledge the significance of market price in the assessment of a business's revenues and expenses.
Verified Answer
AP
Learning Objectives
- Elucidate the situations that require a company to continue, diminish, or discontinue production efforts in the short run.
- Acknowledge the significance of market price in the assessment of a business's revenues and expenses.
Related questions
The Price-Taker Firm Should Discontinue Production Immediately If ...
If an Amusement Park That Is Highly Profitable During the ...
In the Short Run, a Profit-Maximizing Firm in a Price-Taker ...
Suppose That Price Is Below the Minimum Average Total Cost ...
If a Restaurant in a Summer Tourist Area Is Highly ...