Essay
If a firm operates at a loss,the loss is equal to TC - TR.If the firm shuts down instead,its loss is equal to FC.Given this,show that price must exceed AVC for the firm to operate at a loss and not shut down.
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The firm operates at a loss if...View Answer
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Correct Answer:
Verified
The firm operates at a loss if...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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