If a price-taker firm is making losses, how does it decide whether or not to go out

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If a price-taker firm is making losses, how does it decide whether or not to go out of business? What is the difference between shutting down in the short run and going out of business in the long run?

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Economics Private And Public Choice

ISBN: 9780357133996

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 17, 2023 10:01 AM

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If a price-taker firm is making losses, how does it decide whether or not to go out

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A pricetaking firm which operates in a perfectly competitive market must make decisions about its operations when it is experiencing losses The firms ...View the full answer

Economics Private And Public Choice

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