Sometimes a Firm Will Continue to Operate Even If That $P = M C = A C$

question 64

Multiple Choice

Sometimes a firm will continue to operate even if that firm incurs short-run negative profits (losses) . Which of the following characterizes this situation?

• A) \(P = M C = A C\).
• B) \(P = M C = A V C\).
• C) \(P = M C\) where \(P > A V C\) but \(P < A C\).
• D) \(P = M C\) where \(P > A C\) but \(P < A V C\).

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Definitions:

Screening Opportunity

The process of evaluating business opportunities to determine their viability and potential for success.

Action Plan

A detailed outline of the steps, tasks, and resources required to achieve specific goals or objectives.

Overall Schedule

A comprehensive plan that outlines all planned activities and their timelines in a project or operation.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.