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Answer to Question #228100 in Macroeconomics for Emy

Question #228100
“If a firm cannot earn profits in the short run, it will shut down”. Is it a true or false
statement? Give your reasons
1
Expert's answer
2021-08-23T13:11:52-0400

False

A firm will operate at a loss in the short run if the loss incurred in production is less than the loss incurred as a result of shutting down.


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