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Tags
#cfa #cfa-level-1 #economics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit
Question

By terminating business operations through market exit, investors escape the erosion in their equity capital from [...].

Answer
economic losses

Tags
#cfa #cfa-level-1 #economics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit
Question

By terminating business operations through market exit, investors escape the erosion in their equity capital from [...].

Answer
?

Tags
#cfa #cfa-level-1 #economics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit
Question

By terminating business operations through market exit, investors escape the erosion in their equity capital from [...].

Answer
economic losses
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, the firm will exit the market as a business entity to avoid the loss associated with fixed cost at zero production. By terminating business operations through market exit, investors escape the erosion in their equity capital from <span>economic losses. When total revenue is enough to cover total variable cost but not all of total fixed cost, the firm can survive in the short run but will be unable to maintain financial sol

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