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Home Q & A Board Other Fields Homework Help Business Economics
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aryaelfkind aryaelfkind
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7 months ago

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.

Textbook 
Economics

Economics


Edition: 12th
Author:
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dmahrdmahr
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7 months ago
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aryaelfkind Author
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7 months ago
Good timing, thanks!
klyn
wrote...

Yesterday
Correct Slight Smile TY
lolaww
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2 hours ago
This site is awesome
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