T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total
cost is $2.50 and the average variable cost is $2.20. Based on these data, the firm should: A – shut down in the short run. B – decrease output to 2,500 units. C –
ontinue to produce 3,000 units. D – increase output to 3,500 units.