Options:
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Earlier discussion
1 older comment kept for context.
Kelvin
C) P < AVC
A firm will continue to produce in the short-run if the price (P) of its product is greater than its average variable cost (AVC). If the price of the product is less than the average variable cost, the firm will be operating at a loss. In this case, the firm will be producing at a loss, as the revenues generated from selling the product will not be enough to cover the costs of producing it. Therefore, the firm will continue to produce in the short-run if P < AVC.