Asked by
Hailey Melichar
on Nov 16, 2024
Verified
In the long run, a firm should exit the industry if its total costs exceed its total revenues.
Total Costs
The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.
Total Revenues
The total amount of money generated by a firm or entity from its business activities, before any expenses are subtracted.
- Elucidate how market price, average total cost, and operational strategies of firms interact within short-run and long-run frameworks.
- Acquire an understanding of how entry and exit activities influence equilibrium in a competitive marketplace.
Verified Answer
VO
Learning Objectives
- Elucidate how market price, average total cost, and operational strategies of firms interact within short-run and long-run frameworks.
- Acquire an understanding of how entry and exit activities influence equilibrium in a competitive marketplace.
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