-The figure above shows a perfectly competitive firm. The firm is operating; that is, the firm has not shut down. The firm is

Question

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In a perfectly competitive market, a firm's economic profit or loss is determined by the difference between its total revenue and total cost. If the firm is operating but incurring an economic loss of $200, it means that its total cost exceeds its total revenue by $200. This scenario is consistent with a firm that has not shut down, indicating it can cover its variable costs but not the entirety of its fixed costs, leading to an economic loss.

-The Figure Above Shows a Perfectly Competitive Firm