In a perfectly competitive market, when firms experience economic losses, they should adjust their output until their marginal cost equals ____ to reach a new equilibrium.

In a perfectly competitive market, when firms face economic losses, they need to adjust their output until their marginal cost equals the market price. This adjustment helps firms minimize their losses and find a new equilibrium point. For example, if a company is producing 100 units of a product but is losing money, it might reduce its output to 80 units. By doing this, the marginal cost of producing those 80 units may align with the market price, allowing the firm to cover its costs better. Ultimately, this process helps firms make decisions that lead to a more sustainable operation in the long run.