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EconomicsExploring EconomicsDiscuss the following questions. a. Why must price cover AVC if firms are to continue to operate? b. If the firm is covering its AVC but not all its fixed costs, will it continue to operate in the short run? Why or why not? c. Why is it possible for price to remain above the average total cost in the short run but not in the long run?
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Discuss the following questions. a. Why must price cover AVC if firms are to continue to operate? b. If the firm is covering its AVC but not all its fixed costs, will it continue to operate in the short run? Why or why not? c. Why is it possible for price to remain above the average total cost in the short run but not in the long run?

BuyFind

Exploring Economics

8th Edition
Robert L. Sexton
Publisher: SAGE Publications, Inc
ISBN: 9781544336329
BuyFind

Exploring Economics

8th Edition
Robert L. Sexton
Publisher: SAGE Publications, Inc
ISBN: 9781544336329

Solutions

Chapter
Section
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 12P
Problem 13P
Problem 14P
Problem 15P
Problem 16P
Problem 17P
Problem 18P
Problem 19P
Chapter 12, Problem 8P
Textbook Problem

Discuss the following questions.

a. Why must price cover AVC if firms are to continue to operate?

b. If the firm is covering its AVC but not all its fixed costs, will it continue to operate in the short run? Why or why not?

c. Why is it possible for price to remain above the average total cost in the short run but not in the long run?

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Chapter 12,
Problem 7P
Chapter 12,
Problem 9P

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Chapter 12 Solutions

Exploring Economics
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Ch. 12 - Which of the following are most likely to be...Ch. 12 - Using the following information, which of the...Ch. 12 - Given these data, determine AR, MR, P, and the...Ch. 12 - Illustrate the SRATC, AVC, MC, and MR curves for a...Ch. 12 - Industry councils promote the consumption of...Ch. 12 - Complete the following table and identify the...Ch. 12 - Explain why the following conditions are typical...Ch. 12 - Discuss the following questions. a. Why must price...Ch. 12 - At a price of $5, the profit-maximizing output for...Ch. 12 - Use the following to answer (a) (b), and (c). a....
Ch. 12 - Complete the following table for a perfectly...Ch. 12 - Use the following diagram to answer (a)-(d). a....Ch. 12 - Use the following diagram to answer (a)-(d). a....Ch. 12 - Use the following diagram to answer (a) and (b)....Ch. 12 - In The Wealth of Nations. Adam Smith wrote. Every...Ch. 12 - Graph and explain the adjustments to long-run...Ch. 12 - Evaluate the following statements. Determine...Ch. 12 - Describe what would happen to the industry supply...Ch. 12 - Given the industry description, identify each of...

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