If the price is less than the average costs but high... - Solved MCQs & Answer

3799EconomicsMedium

If the price is less than the average costs but higher than the average variable costs?

AThe firm is making a loss and is making a negative contribution to fixed costs

BThe firm is making a loss but will continue to produce in the short term

CThe firm is making a loss and will shutdown in the short term

DThe firm is making a profile

Correct answer

B. The firm is making a loss but will continue to produce in the short term

Explanation

The correct answer is The firm is making a loss but will continue to produce in the short term.

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