In the short run, a perfectly competitive firm will shut down if at the profit maximizing quantity the

Name: In the short run, a perfectly competitive firm will shut down if at the profit maximizing quantity the
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In the short run, a perfectly competitive firm will shut down if the price (P) is less than the average variable cost (AVC) because it cannot cover its variable costs, leading to losses greater than its fixed costs.

In the Short Run, a Perfectly Competitive Firm Will Shut