In which scenario can a firm pay part, but not all, of its fixed costs and should therefore continue producing even though it is experiencing a loss

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alicecatstorm8549 alicecatstorm8549

05-04-2022
Business

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In which scenario can a firm pay part, but not all, of its fixed costs and should therefore continue producing even though it is experiencing a loss

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-04-07T10:01:21+02:00

The scenario where a firm pay part, but not all, of its fixed costs is when the price exceeds average variable cost but is less than average total cost.

What is a fixed cost?

It should be noted that a fixed cost simply means a cost that doesn't vary with the production level.

In their case, the scenario where a firm pay part, but not all, of its fixed costs is when the price exceeds average variable cost but is less than average total cost.

Learn more about fixed cost on:

https://brainly.com/question/3636923