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​A shoe manufacturer is producing at a point where its marginal costs are $5 and its fixed costs are $5000.At the current price of $10 it is producing 500 pairs.If the demand goes down,such that they can now only charge $8 per pair,should they continue production in the short run?

A) ​No because price has fallen
B) Yes because price is still higher than marginal costs
C) No because price is lower than average cost
D) ​Yes because price is higher than marginal costs

On Sep 29, 2024


B