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In the short-run for a purely competitive market, a manufacturer will stop production when:

the total revenue is less than total costs

the contribution to fixed costs is zero or less

the price is greater than AVC

operating at a loss

a and b

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In the short-run for a purely competitive market, a manufacturer will stop production when:

the total revenue is less than total costs

the contribution to fixed costs is zero or less

the price is ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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