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Should a Competitive firm that is incurring a loss should immediately cease operation?
Wiki User
∙ 11y ago
Some firms continue production even though they suffer a loss because of the 1)future expected economic prospects.2)they have already invested a huge fixed capital3)mainaitn the good will of the parent company (Stock Market prices).4)strong trade union compulsion5) providing public goods and merit goods
Wiki User
∙ 13y ago
Wiki User
∙ 11y agono
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