Microeconomics: Principles, Problems, & Policies, 20th Edition

by McConnell, Campbell; Brue, Stanley; Flynn, Sean

Published by McGraw-Hill Education

ISBN 10: 0077660811

ISBN 13: 978-0-07766-081-9

Chapter 10 - Pure Competition in the Short Run - Discussion Questions - Page 237: 7

Answer

The answer is below.

Work Step by Step

There are many factors that go into the decision that are not given, but it would be best to shut down the firm. After all, if the price of the good has decreased and there are no signs of it increasing in the near future, it does not make sense to stay open, for there is simply not enough possible revenue to offset costs.

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