In the Short-Run,if a Competitive Firm Finds Itself Operating at a Loss,it

question 35

Multiple Choice

In the short-run,if a competitive firm finds itself operating at a loss,it will:

• A)have to shut down and exit the market.
• B)continue to operate as long as price is greater than average variable cost.
• C)liquidate all its assets to ensure cash flow.
• D)reduce the size of its plant to lower fixed costs.

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Definitions:

Stress

A physical or emotional response to demanding circumstances, leading to a feeling of strain or pressure.

Daily Hassles

Routine challenges of day-to-day life that can contribute to stress, such as traffic, work deadlines, and household chores.

Small But

Referring to something that is minor in size or amount yet holds significance or importance.

Annoying Everyday

No standard definition, potentially describing daily nuisances.