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Firm a and Firm B Both Have Total Revenues of $200,000

Question 97

Multiple Choice

Firm A and firm B both have total revenues of $200,000 and total costs of $250,000; firm A has total fixed costs of $40,000,while firm B has total fixed costs of $70,000.Which of the following statements are true in the short run?


A) Firm A should operate.
B) Firm B should operate.
C) Firm A should shut down.
D) Firm B should shut down.
E) both b and c

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