The table gives details for a profit-maximising firm. unit price $1.70 fixed costs $10 000 variable costs per unit $1.75 What conclusion can be drawn about the firm’s behaviour?
- AIt should close down immediately because it is not covering its average costs.
- BIt should close down immediately because it is not covering its variable costs.
- CIt should continue production in the long-run because it is covering its total costs.
- DIt should continue production in the short-run because it is covering its fixed costs.