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Pure Competition and Relationship to Cost

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A firm in pure competition would shut down when:

price is less than average total cost

price is less than average fixed cost

price is less than marginal cost

price is less than average variable cost

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This solution gives you strong points concerning pure competition.

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A firm in pure competition would shut down when:

price is less than average total cost

price is less than average fixed cost

price is less than ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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