The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-In the long-run, a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs.

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-In the long-run, a perfectly competitive firm will leave the market if it is unable to cover all of its fixed costs.

Quizplus · Accepted Answer

In the long run, a perfectly competitive firm will leave the market if it is unable to cover all of its total costs, which includes both fixed and variable costs.

The Figure Given Below Shows the Aggregate Demand and Supply