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A Short-run Decision To Continue Operating In Spite Of Losses. Losses Would Be Minimized With This Decision If Ar>Avc At Qpm. In Other Words - The Revenue Would Be Paying For All Of The Variable Costs And Some Portion Of The Fixed Costs.

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1. A Short-run Decision To Continue Operating In Spite Of Losses. Losses Would Be Minimized With This Decision If Ar>Avc At Qpm. In Other Words - The Revenue Would Be Paying For All Of The Variable Costs And Some Portion Of The Fixed Costs.





 
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