If a firm's current revenues are less than its current variable costs, when should it shut down?

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If a firm's current revenues are less than its current variable costs, when should it shut down? If it decides to shut down, should we expect that decision to be final? Explain using an example that is not in the book.

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Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

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Question Posted: Apr 25, 2018 01:28 AM

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If a firm's current revenues are less than its current variable costs, when should it shut down?

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The firm should shut down immediately If the firm were to conti...View the full answer

Microeconomics Principles, Problems and Policies

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