Answer:
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.
