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Business, 15.04.2020 01:15 maritsaledesma
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed cost of production is $20,000. The price of each good is $10. Should the firm continue to produce in the short run? A. Yes, it should continue to produce because the firm's revenues cover the total variable cost of $16,000. B. Yes, it should continue to produce because its price exceeds its average fixed cost. C. No, it should shut down because it is making a loss. D. There is insufficient information to answer the question.
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A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed co...
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