Question
I'm not sure how to respond to this question properly. What would be the best reply? Under what conditions using the equation Profits = PQ
I'm not sure how to respond to this question properly. What would be the best reply?
Under what conditions using the equation Profits = PQ -AFC*Q - AVC*Q = (P - AFC - AVC)*Q would it be advantageous to continue operating for a loss and under what conditions should the perfectly competitive firm shut down and produce Q = 0 and what would their loss be if they shut down production?
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Principles of Macroeconomics
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
12th edition
134078802, 978-0134078809
