Suppose for a perfectly competitive firm, at the current output level, ATC = $ 1 3 0

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Question:

Suppose for a perfectly competitive firm, at the current output level, ATC

=

130

and AVC

= 120 .

The market price level is $

110 .

Should the firm shut down or stay open in the short run? Explain your answer.

Related Book For answer-question

Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Posted Date: Feb 23, 2024 01:57 AM

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Suppose for a perfectly competitive firm, at the current output level, ATC = $ 1 3 0

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Expert Answer:

In this scenario the perfectly competitive firm should shut down in the short run Heres why Decision ... View the full answer

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