Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.





If you want to change selection, open original toplevel document below and click on "Move attachment"

Parent (intermediate) annotation

Open it
Because fixed costs must be paid regardless of whether a firm operates they should not be considered in deciding whether to produce or shut down.

Original toplevel document

Perfect competition - Wikipedia
revenue to cover its variable costs.[20] The rationale for the rule is straightforward: By shutting down a firm avoids all variable costs.[21] However, the firm must still pay fixed costs.[22] <span>Because fixed costs must be paid regardless of whether a firm operates they should not be considered in deciding whether to produce or shut down. Thus in determining whether to shut down a firm should compare total revenue to total variable costs (VC) rather than total costs (FC + VC). If the revenue the firm is receiving is grea

Summary

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Details

No repetitions


Discussion

Do you want to join discussion? Click here to log in or create user.