Answer to Question #52932 in Microeconomics for Yana

Question #52932
Multiple choice 1. Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely: a. make an economic profit. b. go out of business. c. expand to a bigger operation. d. break even.
1
Expert's answer
2015-07-01T00:00:42-0400
1. Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely:
b. go out of business.
Because if P<AVC, the firm can't cover even its variable costs and should shut down.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal