When a Firm Incurs Losses in the Short Run,the Most

question 28

Multiple Choice

When a firm incurs losses in the short run,the most important consideration in determining whether to continue producing is whether

• A)marginal cost equals marginal revenue
• B)average total cost is at its minimum
• C)average variable cost is at its minimum
• D)revenues cover some of its fixed costs and all of its variable cost
• E)total revenue exceeds total cost

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Significant physical or financial harm caused to property, individuals, or organizations.

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