In the long run,firms will leave an industry if the market price is consistently less than their break-even price.

Name: In the long run,firms will leave an industry if the market price is consistently less than their break-even price.
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Question

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A firm will only continue to operate if it can cover its variable and fixed costs, which is its break-even price. If the market price is consistently lower than its break-even price, the firm will face losses and may eventually exit the industry.

In the Long Run,firms Will Leave an Industry If the Market