If a firm in perfect competition is suffering a loss, it should continue to operate in the short run as long as
a. AR exceeds AVC.
b. AR exceeds AFC.
c. AVC exceeds AFC.
d. AFC exceeds AVC.
a. AR exceeds AVC.
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Which statement is true?
A. The number of people living on family farms has been increasing in recent years. B. Most farm subsidy payments go to large corporate farms. C. The United States' huge agricultural surpluses have completely eliminated starvation in this country. D. None of the statements are true.