A perfectly competitive firm that wants to maximize profits or minimize losses will produce in the short run as long as

Question

Quizplus · Accepted Answer

A perfectly competitive firm will continue to produce in the short run to maximize profits or minimize losses as long as the price of the product is above the average variable cost. This is because, above this point, the firm can cover its variable costs and contribute to covering its fixed costs, even if it's not making a profit.

A Perfectly Competitive Firm That Wants to Maximize Profits or Minimize