Demand conditions at which a firm can make any profit

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Reference no: EM131790185

Question: If demand conditions are such that there is no output at which a firm can make any profit, which of the following would be the best short run policy for the firm to adopt?

shut down

continue to operate so long as there is some output at which it can more than cover its fixed costs

continue to operate so long as there is some output at which it can more than cover its variable costs

discard the rule equating marginal revenue and marginal cost

Reference no: EM131790185

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