T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2.00 each. At this level of output, the average total cost is 2.50 and the average variable cost is $2.20. Based on these data, the firm should
A - shut down in the short run.
B - decrease output to 2,500 units.
C - ontinue to produce 3,000 units.
D - increase output to 3,500 units.
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