In the short run if a perfectly competitive firm finds itself operating at a loss, it will Options: A . &nbspReduce the size of its plant to lower fixed costs B . &nbspRaise the price of its product C . &nbspShut down D . &nbspContinue to operate as long as it covers its variable cost

In the short run if a perfectly competitive firm finds itself operating at a los

Question

In the short run if a perfectly competitive firm finds itself operating at a loss, it will

Options:

A . Reduce the size of its plant to lower fixed costs

B . Raise the price of its product

C . Shut down

D . Continue to operate as long as it covers its variable cost

Answer: Option D

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