The market for boxed pasta is perfectly competitive. Currently, the price of a box of pasta is less than average total cost (ATC) but greater than average variable cost (AVC).
Which of the following occurs in the short-run?
Choose 1 answer:
(A) Firms exit the industry.
B Firms enter the industry.
(C) Firms produce in the short run.
(D) Firms shut down.
(E) Firms produce the output where average total cost is lowest.
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