Why would a profit-maximizing, perfectly competitive firm shut down rather than operate if price was less than

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Why would a profit-maximizing, perfectly competitive firm shut down rather than operate if price was less than its average variable cost?

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Exploring Economics

ISBN: 9781544336329

8th Edition

Authors: Robert L. Sexton

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Question Posted: Jan 17, 2023 05:26 AM

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Why would a profit-maximizing, perfectly competitive firm shut down rather than operate if price was less than

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If a firm shuts down its losses will equal its fixed costs because it has no revenue or variable cos...View the full answer

Exploring Economics

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