Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved
Because ATC has risen, firms are now suffering losses. It is important to be clear, though, that firms cannot alter output
in any way without increasing their losses.
The firms are still maximizing profit. However, due to the losses, firms will begin to exit the industry in the long run, seeking better investments and opportunities.
Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved