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Title: A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixed co Post by: Tidy on Jun 21, 2015 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) No, it should shut down because it is making a loss. B) Yes, it should continue to produce because its price exceeds its average fixed cost. C) Yes, it should continue to produce because it is minimizing its loss. D) There is insufficient information to answer the question. Title: Re: A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The fixe Post by: Sydnie on Jul 8, 2015 Content hidden
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