In a perfectly competitive market, which of the following actions should a firm consider if it is experiencing economic losses? Select all that apply.

In a perfectly competitive market, a firm experiencing economic losses should first consider whether it can reduce its costs. This might involve cutting unnecessary expenses or improving efficiency in production. If losses continue, the firm may need to evaluate whether to temporarily shut down operations to avoid further losses, especially if the revenue does not cover variable costs. Lastly, the firm should think about whether it can adjust its output level to minimize losses, as producing less can sometimes lead to better financial results. For example, if a bakery is losing money because it is making too many cakes that aren’t selling, it might decide to bake fewer cakes to align better with customer demand.