Which of the following is not an option for a perfectly competitive firm that suffers short-run losses?
A)shutting down
B)reducing production
C)reducing the use of variable factors
D)raising the price

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and must accept the market price. Therefore, raising the price is not an option for the firm. The best choice for the firm would be to shut down or reduce production in order to minimize losses. Alternatively, the firm could also try to reduce the use of variable factors to lower costs.

Which of the Following Is Not an Option for a Perfectly