Light
collapse
Practice Quizzes
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 below the average fixed cost.
The total revenue is equal to the total cost.
The price is above the average variable cost.
The market demand is high.
Related content
Practice quizzes
Practice this subject
Practice this unit
Practice this topic
Study guides (1)
AP Microeconomics - 3.6 Firms' Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
Key terms
Losses
Perfectly Competitive Market
Firm
Operate
Short Run
About Us
About Fiveable
Blog
Careers
Testimonials
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
Report an Issue
Stay Connected
© 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.
About Us
About Fiveable
Blog
Careers
Testimonials
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
Report an Issue
© 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.
Back
Practice Quiz
Guides
Glossary
Guides
Glossary
Next
