If a profit-maximizing firm in a perfectly competitive market is incurring an economic loss,then it must be producing a level of output where

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In a perfectly competitive market, if a firm is incurring an economic loss, it means that the price at which it can sell its product is less than its average total cost (ATC) at that level of output. However, to minimize losses or maximize profits, the firm will produce up to the point where price equals marginal cost (P=MC), which is also equal to marginal revenue (MR) in perfect competition. Therefore, the condition that best describes this scenario is when average total cost is greater than marginal cost (D), because the firm is still producing where P=MC but at a loss since P<ATC.

If a Profit-Maximizing Firm in a Perfectly Competitive Market Is