If you are the manager of a perfectly competitive firm that is making a loss (TR < TC), would you decide to shut it down? Under what circumstances would you decide to operate an unprofitable business?

If you are the manager of a perfectly competitive firm that is making a loss (TR < TC), would you decide to shut it down? Under what circumstances would you decide to operate an unprofitable business?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 1SQP

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Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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