Asked by
Courtney Simmons
on Nov 16, 2024
Verified
A firm operating in a competitive market will stay in business in the short run so long as the market price exceeds the firm's average total cost; otherwise, the firm will shut down.
Average Total Cost
The total cost of production divided by the quantity of output produced, representing the per-unit production cost.
- Acquire knowledge on the conditions necessitating a corporation's continuation or cessation of production in the short span.
Verified Answer
FG
Learning Objectives
- Acquire knowledge on the conditions necessitating a corporation's continuation or cessation of production in the short span.