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  When does a competitive firm decide to exit a market completely?  Explain. Use graphs to illustrate.

  When does a competitive firm decide to exit a market completely?  Explain. Use graphs to illustrate.

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it can be mentioned that a competitive firm can decide to exit a market completely or shutdown when the average variable cost is greater than that of the price and this is because of the fact that if the average variable cost is greater than prise it would not be able to recover its variable cost only and therefore it would make loss for each and every product individually apart from the fixed cost and therefore there is no chance for it for making profit and that is the reason why it would decide not to to continue the business and it will shut down and exit the market.

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