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22-05-2023
Business

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Art's Garage operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC=$20, AVC=$18, and price per unit is $10. Given this situation, in the short run, a.Art will shut down immediately. b.Art will sustain losses in the short run but will continue to operate.
c.Art will break even. d.Art will shut down, but only after the lease on the garage expires.

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