Multiple Choice
A perfectly competitive firm, Paula's Pineapple Farm, is incurring a loss. In the short run it should continue to produce if ________, but in the long run, if there is no change in economic conditions, it should exit the industry.
A) price is below minimum AVC
B) price is above minimum ATC
C) price is above minimum AVC
D) price is equal to minimum ATC
Correct Answer:
Verified
Correct Answer:
Verified
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