Exhibit 8-3 Cost per unit curves
If the price of the firm's product in Exhibit 8-3 is $1.50 per unit, which intersects AVC at point B, the firm should:
A. continue to operate because it is earning a positive economic profit.
B. stay in operation for the time being even though it is making an economic loss.
C. shut down temporarily.
D. increase the price.
Answer: B
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