Question
If a firm in perfect competition is facing a market price of $4 per unit, ATC = MC at $8 per unit and AVC =
If a firm in perfect competition is facing a market price of $4 per unit, ATC = MC at $8 per unit and AVC = MC at $5 per unit. What should this firm do?
Group of answer choices
a)this firm should stay in business in the short run and the long run.
b)this firm should stay in business in the short run, but shut down in the long run.
(this firm should shut down in the short run.
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Introduction to Law
Authors: Beth Walston Dunham
6th edition
978-1111642501, 1111642508, 1111311897, 978-1133707981, 113370798X, 978-1111311896
