In the long run, a competitive firm will decide to exit from its business if the price is less than the average total cost.
An earnings-maximizing business decides to shut down inside the brief run when the rate is less than an average variable fee. ultimately, a company will exit a marketplace when the rate is less than the average total fee.
The long term is a period of time wherein all elements of production and fees are variable. in the long run, businesses are capable of adjusting all fees, whereas in the short run firms are only able to influence expenses via changes made to production degrees.
In a superbly competitive Firm, companies can simplest enjoy earnings or losses in the brief run. ultimately, earnings and losses are eliminated because countless quantity of companies is generating infinitely divisible, homogeneous products.
Learn more about competitive Firms here:-https://brainly.com/question/25717627
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