Under what conditions would a firm decide to shut down in the short run but remain invested in the market in the long run? Explain your reasoning.

Q: Perfect competition is an extremely rare type of market in the real world. This is because the…

A: It refers to a market condition in which there are a large number of buyers and sellers that are…

Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

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Q: How is it possible for perfectly competitive firms to maximize profit in the short run versus in the…

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Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…

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Q: What type of economic profit can most firms expect to make in the long run? Explain your answer.

A: A market is a place where buying and selling of goods and services takes place.

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A: Given;

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A: Total cost = Average total cost * quantity Total revenue = Price * quantity Profit = Total revenue -…

Q: Can you explain to me why in the short run, firms only use variable cost to determine whether or not…

A: Shutdown point is a point of production where a firm decides not to continue production as producing…

Q: When might a competitive firm shutdown in the short run and exit the market in the long run?

A: When a perfectly competitive firm finds itself in shutdown, that is, its market price is equal to…

Q: What are the similarities and differences between a short-run supply curve and a short-run market…

A: Supply is the quantity seller are  willing to sell at certain time and place .  And supply curve…

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Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

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Q: In the long run, perfectly competitive firms make zero economic profit. If this is the case, why…

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Q: Why do a firm's profit disappear in the long run?

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Q: WHY SOME FIRMS MIGHT BE ABLE TO CONTINUE TO MAKE AN ACONOMIC PROFIT IN THE LONG RUN?

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A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

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Q: Faced with rising costs , when should a firm choose to shut down , for example in (a)in the short…

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Q: Explain why a company would shut down in the short run.

A: The shut down point is the point at which a firm decides to seize its operations in the short run…

Q: What is the shutdown condition? a.A condition stating when a firm should cease to operate and…

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Q: 'In the short run, the firm should shut down only if the price is less than average variable cost''…

A: This statement is absolutely correct.

Q: Match the words from the list below to complete the following statement A firm will maximise by…

A: Marginal cost refers to the total costs which arise when the the quantity produced increases by one…

Q: What is the shutdown decision of the firm? How should a firm decide whether to continue business or…

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Q: Describe a firm’s decision to shut down and when to exit the market,and explain the difference…

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Q: Using the graph below, determine if the firm should shut down or stay open in the short run and why.

A: From the graph it is easy to understand the firm is earning profit or in a position of facing loss.

Q: In the short-run, competitive firms want to shut down if     P = MC     P = AVC     P > AVC…

A: A perfectly completive market is where several sellers and buyers are involved in the exchange of an…