Consider two perfectly competitive firms producing the same product but using different methods.
Both Firm A and firm B have total revenues of $370 000 and total costs of $440 000.
Firm A has total fixed costs of $110 000, while firm B has total fixed costs of $30 000.
Which of the following statements are true in the short run?
◦ Firm A should shut down and Firm B should operate.
◦ Firm A should operate and Firm B should shut down.
◦ Both firms A and B should shut down.
◦ Both firms A and B should operate.
◦ Cannot be determined based on the available data.