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Perfect Competition: Short-Run Losses & the Shut-Down Decision
Автор: Econbusters
Загружено: 2021-11-07
Просмотров: 6157
Описание: Perfectly competitive firms can make losses in the short-run. The relationship between the price (i.e. the per-unit revenue) and the average variable costs (AVC) is of critical importance. A firm will not supply any of a good, even in the short-run, if the price is less than the average variable costs. If this is the case, it is better for a firm to shut-down (i.e. losses will be minimized). This video is made for 1st year college students or AP/IB Economics students. It focuses on foundational economic concepts.
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