In the long run, if a firm cannot cover its costs, then the profit-maximizing firm
A)increases output and lowers price.
B)continues to produce as long as total revenue exceeds fixed costs.
C)seeks more rewarding opportunities in some other industry.
D)continues to produce so that it maximizes its opportunity costs.
E)continues to produce as long as total revenue exceeds variable costs.

Question

Quizplus · Accepted Answer

In the long run, if a firm cannot cover its costs, it will seek more rewarding opportunities in some other industry as a profit-maximizing strategy, rather than continuing operations at a loss.

In the Long Run, If a Firm Cannot Cover Its