A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65. In the long run, the firm should a. Continue operating price is higher than average cost, its making a profit b. Shut down since price is greater than average cost c. Shut-down because it is cost effective to pay off the remaining fixed costs d. Continue operating as the firm is covering all the variable costs and some of the fixed costs
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