Why would a firm keep producing even though it is losing money?
a. If the price is greater than the minimum average total cost, the firm will cover all its variable costs and lower its losses by paying off some of its fixed costs.
b. If the price is less than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
c. If the price is greater than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
d. If the price is less than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
c. If the price is greater than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
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Any change in people's willingness to participate in the labor force is represented as a movement along a labor supply curve
a. True b. False Indicate whether the statement is true or false
A market achieves allocative efficiency when: a. total surplus is at its maximum
b. consumer surplus is at its minimum. c. demand is perfectly elastic. d. market concentration is maximized.