Asked by
Victoria Acosta
on Nov 04, 2024
Verified
A firm will choose to operate rather than shut down as long as
A) price is greater than or equal to AFC.
B) AFC is greater than AVC.
C) price is greater than or equal to AVC.
D) AVC is greater than MC.
AVC
Average Variable Cost, referring to the variable cost per unit of output.
MC
An abbreviation commonly used for marginal cost, which is the cost added by producing one additional unit of a product or service.
- Determine the criteria for a firm's continuation or cessation of production in the short-term phase.
Verified Answer
PM
Learning Objectives
- Determine the criteria for a firm's continuation or cessation of production in the short-term phase.