If the price is consistently below the average variable cost,then in the short run a perfectly competitive firm should:

Name: If the price is consistently below the average variable cost,then in the short run a perfectly competitive firm should:
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Question

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If the price is consistently below the average variable cost, the firm is not covering its variable costs and is making a loss. In this scenario, the firm should shut down in the short run as continuing to produce would only increase its losses.

If the Price Is Consistently Below the Average Variable Cost,then