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    Microeconomics Study Set 44
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    Exam 12: Perfect Competition and the Supply Curve
  5. Question
    Why Does It Make Sense for a Firm to Shut
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Why Does It Make Sense for a Firm to Shut

Question 68

Question 68

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Why does it make sense for a firm to shut down in the short run if the price falls below minimum average variable cost?

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When the firm produces, two things happe...

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