Explain why a perfectly competitive firm will shut down in the short run if price is lower

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Explain why a perfectly competitive firm will shut down in the short run if price is lower than the average variable cost but will continue to produce if price is below the average total cost but above the average variable cost.

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Microeconomics

ISBN: 9780538452861

10th Edition

Authors: Roger A. Arnold

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Question Posted: Nov 01, 2024 05:00 AM

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Explain why a perfectly competitive firm will shut down in the short run if price is lower

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Microeconomics

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