In order to continue operating, in the long-run a firm must a. Charge a price equal to its AVC b. Charge a price equal to its

Question

Iteru [2.4K]

3 years ago

13

In order to continue operating, in the long-run a firm must a. Charge a price equal to its AVC b. Charge a price equal to its

AFC c. Charge a price equal to its AC d. None of the above

Business

1 answer:

Marina CMI [18] · Answer 1 · 2022-08-14T20:27:57+03:00

Answer:

The answer is option A)

In order to continue operating, in the long-run a firm must A) Charge a price equal to its AVC

Explanation:

In order to continue operating, in the long-run a firm must charge a price equal to its Average Variable cost AVC.

This is because, a long run is a period of time in which all factors of production and costs are variable.

Over the long run, a firm will search for the production technology that allows it to produce the desired level of output at the lowest cost. If a company is not producing at its lowest cost possible, it may lose market share to competitors that are able to produce and sell at minimum cost.

In order to continue operating, in the long-run a firm must a. ​Charge a price equal to its AVC b. ​Charge a price equal to its

In order to continue operating, in the long-run a firm must a. Charge a price equal to its AVC b. Charge a price equal to its