Question 5. 5. T-Shirt Enterprises is selling in a purely competitive market. It is producing 3,000 units, selling them for $2 each. At this level of output, the average total cost is $2.50 and the...

Question 5.5.
T-Shirt Enterprises is selling in a purely competitive market.  It is producing 3,000 units, selling them for $2 each.  At this level of output, the average total cost is $2.50 and the average variable cost is $2.20.  Based on these data, the firm should

       shut down in the short run.

       decrease output to 2,500 units.

       ontinue to produce 3,000 units.

       increase output to 3,500 units.