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AP Microeconomics
Unit 3 – Production, Cost, and the Perfect Competition Model
Topic 3.6
A firm in a perfectly competitive market is currently experiencing losses in the short run. Which of the following best explains why the firm may continue to operate rather than shutting down?
The price is above the average variable cost.
The market demand is high.
The total revenue is equal to the total cost.
The price is below the average fixed cost.
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AP Microeconomics - 3.6 Firms' Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
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Perfectly Competitive Market
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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