Ask Question
18 February, 00:30

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

+1
Answers (1)
  1. 18 February, 04:15
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers