If a firm is confronted with economic losses in the short run,it will decide whether or not to produce by comparing:

A) marginal revenue and marginal cost.
B) price and minimum average variable cost.
C) total revenue and total cost.
D) total revenue and total fixed cost.

Economic Losses

Situations where total costs exceed total revenues, indicating that resources may be better utilized elsewhere.

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Short Run

A time period in which at least one input is fixed and cannot be changed by the firm, affecting its production decisions.