In a perfectly competitive market, a firm will continue to produce in the short run as long as the market price is greater than or equal to the __________.

In a perfectly competitive market, a firm will continue to produce in the short run as long as the market price is greater than or equal to the average variable cost. This means that the revenue the firm earns from selling its product should at least cover its variable costs, which are the costs that change with production levels, like materials and labor. If the market price falls below this level, the firm would not be able to pay for these essential costs and would lose money on every unit produced. For example, if a bakery's average variable cost to make a loaf of bread is $2, and the market price is $3, the bakery will keep producing because it can cover its costs and still make a profit. However, if the market price drops to $1.