A Farmer Currently Produces 4 000kg Of Potatoes In A Perfectly Competitive Marke

A farmer currently produces 4,000kg of potatoes in a perfectly competitive market and observes that the market price is $7 /kg, his fixed costs are $14,000, and the variable costs are $14,000. In the short run he should:

A) Reduce production if MC<$7

B) Keep producing 4,000kg if MC=$7

C) Reduce production if MC=$7

D) Shut down temporarily

E) Exit the industry

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