The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-One method that firms in many nations use to exit the market is the use of:

Question

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
  MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-One method that firms in many nations use to exit the market is the use of:

Quizplus · Accepted Answer

Bankruptcy laws allow firms to exit the market when they are unable to make enough revenue to cover their costs of production. It is a legal process that helps firms to settle their debts and obligations and avoid legal actions from creditors. Antitrust laws, uniform commercial code, statutory laws, and the federal code do not specifically address the issue of firms exiting the market.

The Figure Given Below Shows the Revenue and Cost Curves