"In the short run, if I can cover my variable costs, I will continue to produce, ignoring my fixed costs. If I cannot cover my variable costs, I will shut down to minimize losses." Is this statement accurate? Why or why not?"In the long run, if I can cover my variable costs, I will continue to produce. If I cannot cover my variable costs, I will shut down." Is this statement accurate? Why or why not? provide an example.

statement A - accurate

satement B- - inaccurate

Explanation:

Statement A is accurate. In short-run, the production and sales are at level where price equals marginal cost. if revenue generated from the sales is less than the variable cost, then it will face heavy losses.

Statement B is inaccurate. It is because on the long-run, the shutdown point and the breakeven point are same. In the long-run both the fixed and variable costs need to be covered, and that occurs when the price is equal to the average cost.

i would have to say its c

answer; conceptual skills;