Answered: A firm will shut down in the short run…

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A firm will shut down in the short run if TR < TC P< ATC TR= TC P = MC P< AVC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A firm will shut down in the short run if
TR < TC
P< ATC
TR= TC
P = MC
P< AVC

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