Hank operates a perfectly competitive firm in the long run. For several periods the market price has been $20, and his break-even price is $22. Given the chance to change his fixed costs, Hank should:
A) stay in the industry, since he can cover his fixed costs.
B) exit the industry, since he is making losses.
C) stay in the industry, since he is a perfect competitor and must take the price as given.
D) wait for the short-run period.
Correct Answer:
Verified
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