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a purely competitive market

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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 Summary

This answer provides you an excellent discussion on a purely competitive market

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See Also This Related BrainMass Solution

Oligopoly, Monopoly, Competitive Markets and Firm Costs

Please explain these questions:

Is it false that the defining characteristic of oligopoly is that each firm is mutually interdependent?
Is it true that a price discriminating monopolist charges the same price to everyone? (Be sure to point out that a price discriminating monopolist must be the only seller in the market.).
Is it false that most consumers would prefer markets that are purely competitive?
Is it true that a firm should shut down in the short run if price is less than average fixed costs?

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