28.The following information is available for a company that operates in a perfectly competitive market. Current Output  5000 units  Current Market Price   $5 Total Cost   $25,000 Marginal Cost  $4 Total Variable Cost  $20,000 What is the best action for this firm? A-Increase output in the short run and stay in the market the long run.   B-Increase output in the short run and decrease output in the long run C-Shut down in the short run and exit in the long run D-Shut down in the short run and produce in the long run

28.The following information is available for a company that operates in a perfectly competitive market.

What is the best action for this firm?

A-Increase output in the short run and stay in the market the long run.  

B-Increase output in the short run and decrease output in the long run

C-Shut down in the short run and exit in the long run

D-Shut down in the short run and produce in the long run

E-Reduce output in the short run and increase output in the long run

29.Which of the following statements is true of a perfectly competitive market in the long run?

A-No firms can enter or exit.    B-All firms earn normal profits, and there is both productive and allocative efficiency.    C-Individual firms produce where average variable cost equals marginal cost and marginal revenue.    D-It is allocatively efficient but may or may not be productively efficient.   E-Consumer surplus will always equal producer surplus.