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 co
A) Yes, it should continue to produce because its price exceeds its average fixed cost. B) Yes, it should continue to produce because the firm's revenues cover the total variable cost of $16,000. 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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