In the short run,a perfectly competitive firm can experience which of the following?
i.an economic profit
ii.an economic loss but it continues to stay open
iii.an economic loss equal to its total fixed cost when it shuts down

Question

Quizplus · Accepted Answer

In the short run, a perfectly competitive firm can experience an economic profit if its total revenue exceeds its total costs, an economic loss but continue to operate if it covers its variable costs (to minimize losses), and an economic loss equal to its total fixed cost when it decides to shut down, as it no longer covers variable costs but must still cover fixed costs.

In the Short Run,a Perfectly Competitive Firm Can Experience Which