WAEC Economics 2012 Objective — Question 19
Question 19 of 49 from the West African Examinations Council (WAEC) Economics 2012 Objective paper, with the correct answer and a full explanation.
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If a firm's price is less than average cost but more than average variable cost, the firm is covering
- A. all of its fixed cost and variable cost
- B. all of its fixed cost and part of variable cost
- C. all of its variable cost and part of fixed costCorrect
- D. part of its variable cost and fixed cost
Explanation
The price is less than the AC but greater than the AVC, the firm covers all of its variable cost and part of fixed cost.
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