Table 14-15-a
-Refer to Table 14-15-a. What is the lowest price at which this firm would operate in the short run?
A)$5.
B)$6.
C)$7.
D)$8.

Question

Table 14-15-a 
-Refer to Table 14-15-a. What is the lowest price at which this firm would operate in the short run?
A)$5. 
B)$6. 
C)$7. 
D)$8.

Quizplus · Accepted Answer

In the short run, a firm will continue to operate as long as it can cover its variable costs. The lowest price at which the firm would operate is equal to the minimum average variable cost (AVC), which is $5 in this case.

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