12. In the short run if a perfectly competitive firm finds itself operating at a loss, it will A. O Reduce the size of its plant to lower fixed costs B. O Raise the price of its product C. O Shut down D. O Continue to operate as long as it covers its variable cost
12. In the short run if a perfectly competitive firm finds itself operating at a loss, it will A. O Reduce the size of its plant to lower fixed costs B. O Raise the price of its product C. O Shut down D. O Continue to operate as long as it covers its variable cost
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 22RQ: How does the average variable cost curve help a firm know whether it should shut down immediately?
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![12. In the short run if a perfectly
competitive firm finds itself operating
at a loss, it will
A. O Reduce the size of its plant to lower
fixed costs
B. O Raise the price of its product
C. O Shut down
D. O Continue to operate as long as it covers
its variable cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7de780c-2e16-4178-95a3-48bf214d1bd4%2Fa1e8784f-3a96-4b85-8e5d-9c9f239a79b0%2Fsx1thi9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:12. In the short run if a perfectly
competitive firm finds itself operating
at a loss, it will
A. O Reduce the size of its plant to lower
fixed costs
B. O Raise the price of its product
C. O Shut down
D. O Continue to operate as long as it covers
its variable cost
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