Question
In short run, if a competitive firm incurs losses, it will
Answer: Option B
Answer: (b)
In the short run, a firm that is operating at a loss (where the revenue is less than the total cost or the price is less than the unit cost) must decide to operate or temporarily shut down.
.It will shut down if the sale of the goods or services produced cannot even cover the variable costs of production.
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Answer: (b)
In the short run, a firm that is operating at a loss (where the revenue is less than the total cost or the price is less than the unit cost) must decide to operate or temporarily shut down.
.It will shut down if the sale of the goods or services produced cannot even cover the variable costs of production.
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