What situation should a company continue to operate

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Q. Why and under what conditions should a company continue to operate when getting negative economic profits

Q. Suppose that an Italian ice cream firm is facing a linear demand curve and that the current price for the Italian ice cream is set at a point where the price elasticity is 0.7. If the firm decreases the product price,

 

Reference no: EM1352212

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What situation should a company continue to operate : Why and under what situation should a company continue to operate when getting negative economic profits
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