Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run.

Name: Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run.
Brand: Quizplus
Rating: 4.8 (63 reviews)

Question

Quizplus · Accepted Answer

Firms in a perfectly competitive market may continue to operate in the short run despite incurring losses if they can cover their variable costs, as shutting down would result in greater losses equal to their fixed costs.

Perfectly Competitive Firms Will Sometimes Operate Even Though They Incur