Asked by
Shiara Jackson
on Oct 27, 2024
Verified
In the short run,a firm will produce as long as the price is GREATER than its:
A) ATC.
B) MC.
C) MR.
D) AVC.
Average Variable Cost
The total variable cost divided by the quantity of output produced, representing the variable cost of producing one unit of a good or service.
Short Run
A period during which at least one factor of production is fixed, affecting the production capacity.
ATC
Average Total Cost refers to the total cost per unit of output, encompassing both fixed and variable costs.
- Clarify the role of price, average total cost, and marginal cost in deciding a firm's profit levels.
- Clarify the approach used by organizations in deciding on the volume of production in light of marginal revenues and costs.
Verified Answer
AC
Learning Objectives
- Clarify the role of price, average total cost, and marginal cost in deciding a firm's profit levels.
- Clarify the approach used by organizations in deciding on the volume of production in light of marginal revenues and costs.