In the Long Run, When Price Is Less Than Average

question 26

True/False

In the long run, when price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market.

---

Definitions:

Absolute Privilege

Exemption from liability for defamatory statements made in some settings (such as legislatures and courts), without reference to the speaker’s motives or the truth or falsity of the statement.

Defamation Action

A legal claim brought against someone who has made false statements that damage another person's reputation.

Spreads False Information

The dissemination of untrue information or statements, often with the intent to deceive or mislead.

Sued

The act of bringing a lawsuit against an individual or entity, seeking legal remedy for harm or grievances.