A firm hasaverage variable Costs of RO 60 per unit, average fixed costs of RO 40 per unit and can sell its output at KO 50ner unit. AFC + AVC = ATC 40 + 60 = (00 J TC = 0 = 25 AFCa. The firm should keep operating in the short run. The firm should shut down in the short run. c. The firm needs to increase output in the short run. The firm needs to keep operating in the long run, since average revenue is more than average fixed costs. MC %3D

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