A doorknob manufacturer sells 400 doorknobs at a price of $10 each. It has total costs of $4,500, of which $700 are fixed costs. This means the firm
a. has an economic profit of $500
b. should produce in the short run at a loss
c. should shut down in the short run
d. has total variable costs of $500
e. has price less than average variable cost
B
Economics
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