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 price

Question

Quizplus · Accepted Answer

A perfectly competitive firm cannot raise the price as it is a price taker in the market. The only feasible choices for the firm are to shut down, reduce production or reduce the use of variable factors. The best choice would depend on the individual firm's circumstances and their ability to reduce costs without impacting the quality of the product.

Which of the Following Is Not an Option for a Perfectly