Price does not at least cover average total cost
Price does not equal marginal cost
Economies of sale are being reaped
Price is greater than long run average cost
✅ The correct answer is A.
In the long run, any firm will eventually leave the industry if Price does not at least cover average total cost. Exit is the long-run process of firms reducing production and shutting down in response to industry losses.
In the long run, any firm will eventually leave the industry if Price does not at least cover average total cost. Exit is the long-run process of firms reducing production and shutting down in response to industry losses.