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Long Run Entry and Exit Decision
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Problem 7
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Problem 10
Long Run Entry and Exit Decision
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11. Perfect Competition / Long Run Entry and Exit Decision / Problem 7
Problem 7
How does the absence of fixed costs in the long run influence a firm's decision to produce?
A
It allows the firm to focus solely on covering variable costs.
B
It makes all costs variable, allowing the firm to decide based on total costs.
C
It forces the firm to exit the market immediately.
D
It has no effect on the firm's decision to produce.
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