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He's probably referring to the fact that marginal cost is still below marginal revenue, but long-run average cost is above marginal revenue. This situation is o
by savanaly 12y ago
He's probably referring to the fact that marginal cost is still below marginal revenue, but long-run average cost is above marginal revenue. This situation is often covered in introductory microeconomics and the conclusion is that they will continue to operate in the short run but shut down in the long run.