In order to continue its operations, in the long-run a firm must
a. Charge a price that is equal to its AVC
b. Charge a price that is equal to its AFC
c. Charge a price that is equal to its AVC + AFC
d. Need more information to determine the price
c
You might also like to view...
If a good has an income elasticity of 0.18, then it is:
A. a normal good, and a necessity. B. a normal good, and a luxury good. C. an inferior good, and a necessity. D. an inferior good, and a luxury.
Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in an increase of domestic producer surplus equal to area(s)
A. E + F + K. B. E. C. E + F + G + H + J. D. K.