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timama [110]
3 years ago
15

A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its:

Business
1 answer:
Leokris [45]3 years ago
8 0

Answer:

D. total variable costs

Explanation:

A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its <u>total variable costs</u>.

In short run, fixed cost had to be incurred even if it shuts down. So it should operate as long as price is greater than average variable cost.

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Knowledge Check 01 Identify the simplifying assumptions usually made in net present value analysis. (You may select more than on
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