abrazo health provides physicals for $120 each in a perfectly competitive market. at its present rate of output, abrazo's average variable cost is $150, and average total cost is $200. to improve its profit/loss situation, abrazo should:

Answer :

To improve its profit/loss situation, abrazo should increase price for physicals in a perfectly competitive market.

A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behavior in a market economy, despite perfect competition seldom occurring in actual markets.

A perfect market, also known as an atomistic market, is defined by various idealizing conditions, which are together referred to as perfect competition, or atomistic competition, in economics, specifically general equilibrium theory. It has been shown in theoretical models with perfect competition that a market will find equilibrium when the amount supplied for each good or service, including labor, equals the amount sought at the current price.

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