If a Firm Is Operating at a Loss in the Short

question 78

Multiple Choice

If a firm is operating at a loss in the short run and finds that its price is greater than average variable cost, then in the short run:

• A) it should produce where MR = MC.
• B) it should produce zero output.
• C) it should go out of business.
• D) total revenue is less than total variable costs.
• E) total revenue is greater than total costs.

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