continue: total cost of production. Will the firm shout down in the short run? Explain. With the firm exit the market in the long run? Explain and draw the required graph. please if you can answer 2-3 paragraphs?
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Answers & Comments
No, it is above the shut down point in the short run. But it still operates in a loss. It can just cover the fixed cost. But in the long run, it will shut down eventually.
If you are covering your variable costs then you wont shut down in the short run but most likely will shut down in the long run.
Edit: wasn't paying attention to my comment and had the two switched.
finished fee and variable fee relies upon upon output. The substitute in those expenses would be on the comparable curve. however the substitute in fastened fee will reason the completed curve to shift, and so the factor the place MC=MR.
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