Ldquowhen the firms in a perfectly competitive industry are, Ask an Expert

Economics

“When the firms in a perfectly competitive industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will immediately shutdown.” True or false? Explain.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91696221

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