Multiple Choice
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-In the short run, a firm continues to produce only if it can cover the:
A) fixed costs.
B) sunk costs.
C) explicit costs.
D) variable costs.
E) implicit costs.
Correct Answer:

Verified
Correct Answer:
Verified
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