In a market with a fixed number of firms,as long as price is

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In a market with a fixed number of firms, as long as the price is above the average variable cost, each firm will continue to produce in the short run and maximize profits by producing where marginal cost equals price. This means that each firm's marginal cost curve becomes its supply curve. However, if the price is below the average variable cost, the firm will shut down in the short run and produce zero output.

In a Market with a Fixed Number of Firms,as Long