Answered: 6) Given that the competitve market…

6) Given that the competitve market pice is equal to P*, Should the firm shut down in the short run? Should it shut down in the long run? Explain.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...

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6) Given that the competitve market pice is equal to P*, Should the firm shut down in the short run?
Should it shut down in the long run? Explain.
P
P
MC
AVC
ATC
P=MR=AR=d
o

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