A perfect competitor found that it could produce a maximum output of 100 units each day, which it
can sell at the market price or AR of R100, but even at this rate, it would make a loss. Considering
this information, under what circumstances would it definitely make a smaller loss if it shut down
and produced nothing
1
Expert's answer
2018-04-11T17:09:12-0400
A perfect competitor found that it could produce a maximum output of 100 units each day, which it can sell at the market price or AR = P = MC = MR = R100, but even at this rate, it would make a loss. Considering this information, it would definitely make a smaller loss if it shut down and produced nothing if his P < AVC or AVC > 100 and his losses are minimized at this amount of output produced.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
"assignmentexpert.com" is professional group of people in Math subjects! They did assignments in very high level of mathematical modelling in the best quality. Thanks a lot
Comments
Leave a comment