During the summer,Alex runs a mowing service,and lawn mowing is a perfectly competitive industry.In the short run,Alex will shut down if the:

Question

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In the short run, a perfectly competitive firm will only continue to produce if the total revenues can cover the variable costs. This is because fixed costs cannot be avoided in the short run, so shutting down completely would not result in any savings from fixed costs. Therefore, if the firm cannot cover at least the variable costs, they will shut down immediately to minimize losses.

During the Summer,Alex Runs a Mowing Service,and Lawn Mowing Is