A profit-maximising firm sells its product for R300, but continues to produce even though it is making a loss. This suggests that A. the average total cost is less than the price.
B. the average variable cost is less than the price.
C. the average fixed cost is less than the price.
D. the marginal cost is less than the price.
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Expert's answer
2021-08-19T12:20:38-0400
If a profit-maximising firm sells its product for R300, but continues to produce even though it is making a loss, then this suggests that the average variable cost is less than the price.
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