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An analyst gathers the following financial data (in millions)forafirmoperatinginaperfectlycompetitivemarket:Totalvariablecosts:700Totalfixedcosts:400Ifthefirm′stotalrevenueismillions) for a firm operating in a perfectly competitive market: Total variable costs: 700 Total fixed costs: 400 If the firm's total revenue is millions)forafirmoperatinginaperfectlycompetitivemarket:Totalvariablecosts:700Totalfixedcosts:400Ifthefirm′stotalrevenueis1,000 million, the firm should:
A
Continue operations in both the short run and long run.
B
Continue operations in the short run but exit the market in the long run.
C
Cease production in the short run and exit the market in the long run.
