A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed

A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed

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 A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed cost of $5 and a variable cost of $40 to produce the good. Which of the following is true?

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The average revenue of the firm is $20. 

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The firm should operate in the short run but shut down in the long run.

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The firm should shut down.

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The marginal cost of the good is $4.

 
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