A custom paper company finds that when the price of paper is $5, its total revenues are $60,000. Its total costs are $70,000, of which $57,000 are variable costs. From this we can infer
A) the firm sells 14,000 units of paper
B) economic profit is $10,000
C) the firm should shut down in the short run
D) total fixed costs are $3,000
E) price is greater than average variable cost
Correct Answer:
Verified
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