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Which of the following is true about firms exiting a perfectly competitive market? Select the correct answer below: O The pri
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Answer #1

Firms exiting the perfectly competitive markets -

when the price where firms exit the market shows the price where the firm would lack enough revenue to cover it's variable costs is the correct answer. As if at this price the firm doesn't decide to exit the market than it will have to face the economic losses. This point is generally know as a shut down point .

Other options are incorrect from perfect competitive market view point .

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Answer #2

It's: Exiting the market occurs in response to a sustained pattern of losses.

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