Re: ISI 2017 key

Posted by Abhitesh on May 23, 2017; 2:10pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-2017-key-tp7604137p7604638.html

Firm A can operate only when p>1. It'll shut if p<=1.
Firm B can operate at any p. B doesn't have to produce large output. It can just produce 1 unit and stop there.

In competitive industry firms are price takers.