Home › Bihar Board Class 12 (Arts) › Economics › Producer Behaviour and Supply › In the short run, a firm continues to produce on…
In the short run, a firm continues to produce only if price is at least what?
AAverage fixed cost
BAverage variable cost
CTotal fixed cost
DTotal variable cost
Answer & Solution
Correct answer: B. Average variable cost
If price is below AVC the firm loses more than its fixed cost, so shutting down is better.
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