A Perfectly Competitive Firm Produces 3000 Units of a Good

Multiple Choice

A perfectly competitive firm produces 3000 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 incurring 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 minimising its loss.
D) There is insufficient information to answer the question.