Asked by Salli Braswell on May 01, 2024
Verified
A competitive firm will produce in the short run so long as its price exceeds its average fixed cost.
Average Fixed Cost
The fixed expenses of a business spread out over the total number of units produced, decreasing as production increases.
- Acquire insight into the operational decisions faced by corporations in the immediate and distant future, including considerations for halting operations and exiting the market.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
False
Explanation :
A competitive firm will produce in the short run so long as its price exceeds its average variable cost, not its average fixed cost.
Learning Objectives
- Acquire insight into the operational decisions faced by corporations in the immediate and distant future, including considerations for halting operations and exiting the market.