Competitive firms that earn a loss in the short run should

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Competitive business firms that earn a loss in the short-run should shutdown if price (P) is lesser than average variable cost (AVC).

<h3>What is an average variable cost?</h3>

An average variable cost (AVC) can be defined as the cost of production per unit item incurred by a business firm and divided by total output of production. Thus, it's calculated by dividing total variable cost (TVC) by total output of production.

As a general rule in Economics, competitive business firms that earn a loss in the short-run are advised to shutdown their production when price (P) is lesser than average variable cost (AVC).

Read more on average variable cost here: brainly.com/question/17010492

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A trader sold a radio set for 72.00 making a profit of 8% .Find , correct to the nearest ghana cedis ,the cost price for the rad

VMariaS [17]

Given:

The selling price of a ratio set = 72.00

Profit percent = 8%

To find:

The cost price for the radio set.

Solution:

Let x be the cost price for the radio set.