if-a-firms-price-is-8-and-its-average-variable-cost-is-10-what-should-the-firm-d

Question

If a firm's price is $8 and its average variable cost is $10, what should the firm do?

Accepted Answer

Shut down production.

Answer

Continue production to cover fixed costs.

Answer

Exit the market permanently.

Answer

Increase production to reduce average costs.

If a firm's price is \$8 and its average variable cost is \$10, what should the firm do?