Which of the following conditions must be met for a firm in a perfectly competitive market to continue production in the short run, despite experiencing economic losses? Select all that apply.

In a perfectly competitive market, a firm can continue to produce in the short run even if it faces economic losses, as long as it can cover its variable costs. This means that the revenue from selling its goods must be enough to pay for the costs that change with production, like wages and materials. For example, if a lemonade stand sells enough lemonade to pay for lemons and cups, it might keep selling even if it isn’t making a profit overall. Additionally, if the firm believes that conditions might improve in the future, it may choose to stay open temporarily. Therefore, as long as the firm can cover its variable costs and has a reason to hope for better times ahead, it can keep producing despite losses.