A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as :_______
a) the loss is smaller than its marginal costs
b) the loss is smaller than its total variable costs.
c) price exceeds marginal costs.
d) the loss is smaller than its total fixed costs.

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the short run, if the average variable cost is less than the price, the firm should continue production.

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A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as :_______ a) the loss is smaller than its marginal costs b) the loss is smaller than its total variable costs. c) price exceeds marginal costs. d) the loss is smaller than its total fixed costs.

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When should a perfectly competitive firm continue production ?

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A perfectly competitive firm will be willing to produce even at a loss in the short run, as long as :_______
a) the loss is smaller than its marginal costs
b) the loss is smaller than its total variable costs.
c) price exceeds marginal costs.
d) the loss is smaller than its total fixed costs.