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What is the difference between exit …

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What is the difference between exit point and shut down point? ??

Posted by Syed Khabib 7 years, 1 month ago

CBSE > Class 12 > Economics

1 answers

Sia ? 4 years, 6 months ago

If the market price that a perfectly competitive firm faces is above average variable cost, but below average cost, then the firm should continue producing in the short run, but exit in the long run. We call the point where the marginal cost curve crosses the average variable cost curve the shutdown point.

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