Banking System and Capital Market Questions and Answers for Competitive Exams

Q.

If a firm operating at loss in the short-period perfect combination, it should:

[A] Decrease the production and the price
[B] Continue to operate as long as it covers even the variable costs
[C] Increase the production and the price
[D] Shut-down and leave the industry

Answer & Explanation

Answer: Option [B]

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