A perfectly competitive firm finds itself in the following situation: TR = $6000; TC = $8000; FC = $3888; P = $8; and MC = $8. The firm should:
A) continue to produce as it is now.
B) decrease production, but not shut down.
C) increase production.
D) shut down.

Question

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The Answer of A perfectly competitive firm finds itself in the following situation: TR = $6000; TC = $8000; FC = $3888; P = $8; and MC = $8. The firm should:
A) continue to produce as it is now.
B) decrease production, but not shut down.
C) increase production.
D) shut down.

A Perfectly Competitive Firm Finds Itself in the Following Situation