A firm could continue to operate for years without ever earning a profit as long as it is producing an output where A)MR AVC. C)MR AVC. D)AFC

Name: A firm could continue to operate for years without ever earning a profit as long as it is producing an output where A)MR AVC. C)MR > AVC. D)AFC < AVC.
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Question

A firm could continue to operate for years without ever earning a profit as long as it is producing an output where A)MR < ATC. B)ATC > AVC. C)MR > AVC. D)AFC < AVC.

Quizplus · Accepted Answer

A firm can continue operating in the short run as long as it covers its variable costs, which means MR (Marginal Revenue) must be greater than AVC (Average Variable Cost).

A Firm Could Continue to Operate for Years Without Ever