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| 4.Suppose a price-taker firm produces baseball bats that sell at a price of $100 each. This firm’s average total cost at the current level of production is $150 per bat, and the average fixed cost is $40 per bat. Which of the following statements is most accurate regarding this firm? They should: A:A:continue producing baseball bats because they are covering their fixed costs B:B:shut down in the short run because their average variable cost is greater than their price. C:C:shut down in the short run because their average total cost is greater than their price. |
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