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

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: 4

Answer

No

Work Step by Step

There are multiple reasons that losing money in the present does not mean that a firm should shut down. First of all, just because they are losing money now does not mean they will be losing money in the future. In addition, sometimes the money lost shutting the firm down exceeds the money lost when the firm is simply kept open.
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