You have been hired by an unprofitable competitive firm to determine whether it should shut down its operation. The firm currently uses 70 workers to produce 300 units of output per day. The daily wage (per worker) is $100, and the price of the firm's output is $30. The cost of other variable inputs is $500 per day. Although you do not know the firm's fixed cost, you know that it is high enough that the firm's total costs exceed its total revenue. You know that the marginal cost of the last unit is $30.
Fill in Multiple Blanks for parts (a) and (b), if rounding is required, round your answer to the whole number (i.e., do not show the decimal places). Enter the numerical value only, do not enter any symbols ($, €, %, etc.).
(a) TVC is $ _____________.
(b) AVC is $_____________ .
(c) In the short run, the firm (enter should or should not) continue to operate at a loss because Price is (enter greater, less, or equal) than/to AVC.