Assume a Firm Has the Following Cost and Revenue Characteristics

Multiple Choice

Assume a firm has the following cost and revenue characteristics at its current level of output: price=$8.00,average variable cost=$6.00 and average fixed cost =$4.00.In the long run,the firm

A) Should shut-down as its making a loss of $2
B) Should continue operating as long as it is covering the variable costs of $6
C) Should continue operating as long as it is covering the fixed costs of $4
D) Should not shut down