Firm A and firm B both have total revenues of $200,00 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?

Select one:

a.

Firm A should shut down.

b.

Firm A should operate.

c.

Firm B should shut down.

d.

Firm B should operate.

e.

Firm A should shut down, Firm B should operate.

Clear my choice