In the Long Run, If a Firm Cannot Cover Its

question 82

Multiple Choice

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.