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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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