In order to minimize losses in the short run,a perfectly competitive firm should shut down if

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In the short run, a perfectly competitive firm should shut down if total revenue is less than total variable cost. This is because in the short run, fixed costs cannot be avoided and must still be paid even if the firm shuts down. Therefore, the firm should only continue operating if it is able to cover its variable costs, which are typically the costs of producing each unit of output. If total revenue is less than total variable cost, then the firm is not even earning enough revenue to cover its production costs and it would be better off shutting down and minimizing its losses.

In Order to Minimize Losses in the Short Run,a Perfectly