A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00 per unit. In the short run, this firm is a. incurring a profit. b. incurring a loss of $2.00 per unit and should shut down. c. incurring a loss per unit of $2.00, but since it can still cover its variable costs, should continue to operate d. unable to cover all of its fixed cost and hence should shut down.
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Home » Business » A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00 per unit. In the short run, this firm is a. incurring a profit. b. incurring a loss of $2.00 per unit and should shut down. c.