If a perfectly competitive firm cannot cover all of its costs, then it should shut down in the short run.

Name: If a perfectly competitive firm cannot cover all of its costs, then it should shut down in the short run.
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In the short run, a perfectly competitive firm should continue operating if it can cover its variable costs, even if it cannot cover its total costs, as long as the price is above the average variable cost.

If a Perfectly Competitive Firm Cannot Cover All of Its