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प्रश्न
Briefly discuss the situations when a perfectly competitive firm continues to produce even after facing losses in the short run.
लघु उत्तर
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उत्तर
If P > AVC but P < ATC, the firm continues to produce in the short run, incurring economic losses. However, if P < AVC, the firm stops producing because the price is insufficient to cover variable costs, and it incurs its fixed costs.
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