Suppose a competitive firm's total revenue is $1,000,000 where MR = MC,its explicit variable costs are $900,000,its fixed costs are $90,000 of which $60,000 are sunk in the short run.If its implicit opportunity costs are $50,000,the firm should

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In this scenario, the firm covers its variable costs and contributes to fixed costs, but when including implicit costs, its total costs exceed its revenue, leading to a negative economic profit. However, since it covers its variable costs, it should continue to produce in the short run.

Suppose a Competitive Firm's Total Revenue Is $1,000,000 Where MR