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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
statement? Give your reasons
Expert's answer
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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