Since the beginning of the millennium,the United States has witnessed closure of many Internet start-up companies.According to the model of perfect competition,these companies must have shut down in the short run because:

Question

Quizplus · Accepted Answer

In the short run, firms in perfect competition will shut down if they cannot cover their total variable costs, as continuing operations would lead to greater losses than shutting down.

Since the Beginning of the Millennium,the United States Has Witnessed