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Other Fields Homework Help Economics Topic started by: Llanis on Oct 18, 2017



Title: If the market price in a competitive market is below the minimum of average variable cost the firm ...
Post by: Llanis on Oct 18, 2017
If the market price in a competitive market is below the minimum of average variable cost the firm will shut down.
True or False? Provide an explanation.


Title: Re: If the market price in a competitive market is below the minimum of average variable cost the ...
Post by: Tyforumca on Oct 18, 2017
True ... Because At this price total fixed costs are smaller than the operating loss. It pays for the firm to shut down.