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Title: Consider the following data: equilibrium price = $10, quantity of output produced = 100 units, ... Post by: aryaelfkind on Oct 1, 2023 Consider the following data: equilibrium price = $10, quantity of output produced = 100 units, average total cost = $13, and average variable cost = $7. What will the firm do and why? ▸ Shut down in the short run, because it is taking a loss of $200. ▸ Continue to produce in the short run, because price is greater than average variable cost. ▸ Shut down in the short run, because average variable cost is less than average total cost. ▸ Continue to produce in the short run, because firms are always stuck with having to produce in the short run. Title: Re: Consider the following data: equilibrium price = $10, quantity of output produced = 100 units, ... Post by: dmahr on Oct 1, 2023 Content hidden
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