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Nata [24]
1 year ago
7

Competitive firms that earn a loss in the short run should

Mathematics
1 answer:
dedylja [7]1 year ago
8 0

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

#SPJ1

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Answer:

y-coordinate = 0

Step-by-step explanation:

Consider the below diagram attached with this question.

Section formula:

If a point divides a line segment in m:n whose end points are (x_1,y_1) and (x_2,y_2), then the coordinates of that point are

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(6,0)

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