Why do perfectly competitive market companies continue to operate in a state of loss in the short te

Because there is the concept of break-even point, if you don't operate, such as depreciation, land use tax, etc., it doesn't mean that you can't pay if you don't operate, then you have no income so you can only lose money, although the enterprise has zero profit but at least he has no loss. Therefore, although the company has zero profit, he still has to operate, at least without losing money.

Many factors are caused, mainly including: 1. Irresistible external conditions, such as climate 2, business leaders 3, and team factors.

Needless to say, the characteristics of a perfectly competitive market, according to the question you raised, I started from the loss, continue to operate, first of all, in this question I think the profit and loss of the enterprise can be considered from two aspects, first, sales. Second, supply. From the sales aspect, in a perfectly competitive market, goods are undifferentiated, that is, quality, quality, are no difference, consumers have randomness when choosing goods, at this time enterprises can only through public relations to ** their own products, so those small enterprises can survive during this period, although it is a loss but can also be maintained.

In terms of supply, the supplier is also an enterprise, so he also has something in common with the above, and in a completely competitive market, it is not ordered by himself, but by the market. This also provides low-priced goods to loss-making businesses. In this way, the difference between sales and suppliers provides an opportunity for loss-making companies to stay afloat.

This is my personal understanding, maybe not, but I hope to give you a little inspiration.

The main reason why small and medium-sized enterprises are in a state of loss and are still struggling to support is that there is hope if they persist.

Small and medium-sized enterprises are struggling to operate, especially the impact of the new coronavirus on enterprises, especially in the service industries such as hotels, transportation, and tourism, which will be more difficult to operate, and they have to suspend business in order to control costs.

The road to entrepreneurship for micro, small and medium-sized enterprises is very difficult, and it is not easy to develop to a certain scale. Whether it is making products, or making markets, and looking for projects, funds and partners everywhere, entrepreneurs have never stopped on the way forward. Entrepreneurs of micro, small and medium-sized enterprises do not want their hard-working enterprises to collapse because of operating losses, but constantly change their business models and look for ways to break through.

For example, due to the impact of the epidemic, many training institutions have moved their training business online, although there is a lack of face-to-face interaction between teachers and students, but it has not had much impact on the teaching effect. At the same time, the fragmented time of the trainees is effectively utilized.

See Article 3, Article 4. Under the conditions of full competition, short-term production can be seen as a fixed number of enterprises in the market, and these enterprises seek to maximize their profits under the given **. Under the given scale of production, the impact of the ** level of different markets on the industry:

1 When the market ** is high and the average revenue is greater than the average total cost, the company obtains excess profits. For example, when the market egg ** is higher than a catty of 5 yuan, and the average cost of producing a catty of eggs is 2 yuan, his average income is also a catty of 5 yuan, according to the marginal benefit is equal to the marginal cost of the profit maximization principle, assuming that he chooses the optimal yield of 500 catties,.

Because on this output, his marginal cost is exactly 5 yuan. Therefore, the short-term equilibrium of his enterprise is 5 yuan, the short-term equilibrium output is 500 catties, and the excess profit he obtains = (5-2) * 500 = 1500 yuan. At this time, if his output is greater than or less than 500 catties, his profit will be less than 1500 yuan, so 1500 is his maximum profit in ** for 5 original.

2. When the market ** is high, and the average income is equal to the average total cost, the economic profit of the enterprise is Ling, and only normal profits can be obtained.

3. When the market declines and the average income is less than the average total cost, but still greater than the average total cost, the enterprise loses money, but can continue to produce.

4 When the market** continues to decline, and the average income is equal to the average variable cost, the loss of the enterprise is at the critical point between production and non-production, that is, the point of cessation of business. (If production continues.) All the benefits of a business you don't have all the variable costs, and you can't you don't have any fixed costs.

If he does not produce, he does not have to pay variable economic costs, but fixed costs still exist. Therefore, the average return equals the average variable cost is the critical point between the production and non-production of the enterprise.

5 When the market ** falls to a lower level, the loss of the enterprise is greater, and as a rational producer, he will stop production.

It can be seen that the short-term equilibrium condition of perfectly competitive industries is: marginal return = average return = **= short-term marginal cost.

Hello dear, because according to the principle that marginal benefit is equal to marginal cost, under the established **, the manufacturer chooses to provide the number of goods at the intersection of ** and marginal cost. Therefore, short-term equilibrium can be divided into several situations: (1) supply is less than demand, that is, the ** level is high (p ac), and there is excess profit at this time; (2) Supply is equal to demand, that is, ** is equal to average cost (p=ac), at this time, there is normal profit, excess profit is zero, this point is called the balance of income and expenditure; (3) The supply is greater than the demand, that is, the ** level is low (p ac, there is a loss at this time, and the excess profit is negative.