A perfectly competitive firm will produce at an economic loss (negative profit) in the short run market period rather than discontinue production, if there is a rate of output at which price _________________.

exceeds average variable cost

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exceeds average fixed cost

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exceeds average total cost

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equals marginal cost

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Solution

The correct option is A exceeds average variable cost
A perfectly competitive firm will produce at an economic loss (negative profit) in the short run market period rather than discontinue production if there is a rate of output at which price exceeds average variable cost.

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A perfectly competitive firm will produce at an economic loss (negative profit) in the short run market period rather than discontinue production, if there is a rate of output at which price _________________.

The correct option is A exceeds average variable costA perfectly competitive firm will produce at an economic loss (negative profit) in the short run market period rather than discontinue production if there is a rate of output at which price exceeds average variable cost.

The correct option is A exceeds average variable cost
A perfectly competitive firm will produce at an economic loss (negative profit) in the short run market period rather than discontinue production if there is a rate of output at which price exceeds average variable cost.