Table 14-15
-Refer to Table 14-15. What is the lowest price at which this firm would operate in the short run?
A)$3.
B)$4.
C)$5.
D)$6.

Question

Table 14-15 
-Refer to Table 14-15. What is the lowest price at which this firm would operate in the short run?
A)$3. 
B)$4. 
C)$5. 
D)$6.

Quizplus · Accepted Answer

The lowest price at which a firm would operate in the short run is equal to the minimum average variable cost (AVC). If the price is above the AVC, the firm can cover its variable costs and some fixed costs, thus it will continue to operate.

Table 14-15 -Refer to Table 14-15. What Is the Lowest Price at Lowest