Firm A and firm B both have total revenues of $200,000 and total costs of $250,000; firm A has total fixed costs of $40,000,while firm B has total fixed costs of $70,000.Which of the following statements are true in the short run?

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In the short run, a firm should continue to operate if its total revenue covers its variable costs. Since both firms have total revenues of $200,000 and total costs of $250,000, they are both incurring losses. Firm A's variable costs are $210,000 ($250,000 - $40,000), and Firm B's variable costs are $180,000 ($250,000 - $70,000). Firm A should shut down because its revenue does not cover its variable costs, while Firm B should continue to operate because its revenue covers its variable costs.

Firm a and Firm B Both Have Total Revenues of $200,000