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When a Firm Incurs Losses in the Short Run,the Most

Question 28

Multiple Choice

When a firm incurs losses in the short run,the most important consideration in determining whether to continue producing is whether


A) marginal cost equals marginal revenue
B) average total cost is at its minimum
C) average variable cost is at its minimum
D) revenues cover some of its fixed costs and all of its variable cost
E) total revenue exceeds total cost

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