Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

variable costs may choose to remain in operation for many years rather
than shut down operations.


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1 For four examples of what we mean by a firm’s plant size, consider the following: the amount of
land for a farmer; the number of trucks for a trucking company; the number of sewing machines
for a clothes manufacturer; or the number of rooms for a motel.

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