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27 February, 11:57

In which market structure will a firm choose not to shut down when price is less than average variable cost?

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  1. 27 February, 13:56
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    The market structure in which a firm will choose not to shut down when price is less than average variable cost is:

    None of the above. All firms will shut down when Price < AVC.

    To add, in economics, average variable cost (AVC) is a firm's variable costs (labor, electricity, etc.) divided by the quantity of output produced.
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