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on 06-Nov-2015 (Fri)

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Flashcard 150919375

Tags
#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Question
perfect competition, prices: a firm may continue to operate in the short run with economic losses as long as [what about the price?] because the losses are less than total fixed costs.
Answer
price is greater than AVC

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

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A firm may continue to operate in the short run with economic losses as long as price is greater than AVC because the losses are less than total fixed costs.

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