Reduce the size of its plant to lower fixed costs
Raise the price of its product
Shut down
Continue to operate as long as it covers its variable cost
✅ The correct answer is D.
In the short run if a perfectly competitive firm finds itself operating at a loss, it will continue to operate as long as it covers its variable cost.
In the short run if a perfectly competitive firm finds itself operating at a loss, it will continue to operate as long as it covers its variable cost.