Multiple Choice
Zoe's Bakery determines that P < ATC and P > AVC. In the short run, Zoe should:
A) continue to operate even though she is taking an economic loss.
B) continue to operate, as she is making an economic profit.
C) shut down immediately, as she is taking an economic loss.
D) raise the price until she has maximized her profits.
Correct Answer:
Verified
Correct Answer:
Verified
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