Sonam Asked a Question
June 18, 2021 12:43 pmpts 30 pts
Price < AVC is shut down point or Price = AVC is shut down point
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  • Ankita
    So long the firm cover its avc + part of annual fixed cost it is available to the firm to continue production. whereas, it only cover up variable cost and nothing for its fixed cos...
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  • Archana sharma thankyou
    In short run under perfect competition, Fixed cost have already been incurred. Hence, a firm will operate in the market even if it is incurring losses but is atleast able to cover...
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    Sonam
    but mene ye bhi pdha tha . atleast avc cover hona chahiye price but when p< avc then it is shut down point
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