In the long run,a firm should exit from a market when ________.

Name: In the long run,a firm should exit from a market when ________.
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Question

Quizplus · Accepted Answer

In the long run, a firm should exit from a market when the price is less than the average total cost. This is because when the price is lower than the average total cost, the firm is not able to cover its expenses and is making losses. Therefore, it is best for the firm to exit the market and invest its resources in other more profitable markets or industries.

In the Long Run,a Firm Should Exit from a Market