In the short run, a perfectly competitive firm can make a profit, a loss, or shut down.

Name: In the short run, a perfectly competitive firm can make a profit, a loss, or shut down.
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Question

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In the short run, a perfectly competitive firm can make a profit if the market price is above its average total cost, incur a loss if the market price is below its average total cost, or choose to shut down if the market price is even lower than its average variable cost.

In the Short Run, a Perfectly Competitive Firm Can Make