EBK EXPLORING ECONOMICS
EBK EXPLORING ECONOMICS
7th Edition
ISBN: 9780100544772
Author: Sexton
Publisher: YUZU
Question
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Chapter 12, Problem 8P
To determine

(a)

The price cover AVC if firms are to continue to operate.

To determine

(b)

Whether the firm will continue to operate in the short run if it is able to cover its AVC is to be determined.

To determine

(c)

The reason for Price being above ATC in short run but not in long run is to be determined.

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Can you show me the answers for parts a and b? Thanks.
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