When shall the perfectly-competitive firm shut down


Problem

a. How do you know if there are economic losses for the perfectly-competitive firm?

b. When shall the perfectly-competitive firm shut down?

c. Draw the case of perfect substitutes for factors K and L for a map of isoquants. Add an isocost line, if you know that w/r > MRTS. Show the point of cost minimization. Explain.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: When shall the perfectly-competitive firm shut down
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