Respuesta :
A perfectly competitive firm should not shut down immediately as long as the price is higher than the average variable cost. (third option)
What is a perfectly competitive firm?
A perfectly competitive firm is a firm that is characterized by many buyers and sellers of similar goods and services. Market prices are set by the market forces. There are no barriers to entry or exit of firms into the industry.
In the short run, a perfectly competitive firm should shut down if its price is below the average variable cost. In the long run, the firm should exit the market is the price is below is the average total cost.
To learn more about perfect competition, please check: https://brainly.com/question/17110476s
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