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Llanis Llanis
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Posts: 626
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6 years ago
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.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 67 times
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Replies
wrote...
6 years ago
True ... Because At this price total fixed costs are smaller than the operating loss. It pays for the firm to shut down.
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