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It was noted that companies in purely competitive industries often keep working in the short run even if they encounter losses. This is because Group
It was noted that companies in purely competitive industries often keep working in the short run even if they encounter losses. This is because
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the loss while operating can be less than fixed costs.
in pure competition, companies can only make profits in the long run.
firms should only operate if they are making money.
the loss can be less than variable costs.
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